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The International Finance Corporation (IFC) and HSBC will invest up to USD 40 million to support the modernisation and decarbonisation of Sri Lanka's Port of Colombo. The funding will be used to procure advanced twin-lift ship-to-shore cranes aimed at improving productivity, operational efficiency and energy performance at the South Asia Gateway Terminal (SAGT). The investment is also expected to strengthen the port's role as South Asia's leading transhipment hub, reduce carbon emissions, create employment opportunities and encourage greater participation of women in the maritime sector.
The International Finance Corporation (IFC), a member of the World Bank Group, and HSBC will jointly invest up to USD 40 million to modernise and decarbonise operations at Sri Lanka's Port of Colombo, according to an official announcement made in the past week.
The investment is aimed at improving the port's competitiveness, operational resilience and environmental sustainability, while strengthening its position as South Asia's leading transhipment hub. The initiative is also expected to enhance Sri Lanka's connectivity with global trade routes as the country continues to focus on expanding its logistics and maritime infrastructure.
The financing package of up to USD 40 million includes a sustainability-linked loan of up to USD 20 million from IFC. This amount includes up to USD 8.57 million mobilised through IFC's Managed Co-Lending Portfolio Programme (MCPP). HSBC will provide a parallel green loan of up to USD 20 million.
The funds will be used to procure advanced twin-lift ship-to-shore cranes for the South Asia Gateway Terminal (SAGT). These cranes are expected to increase cargo-handling productivity, improve operational reliability and reduce energy consumption during port operations.
According to the official release, the investment will help SAGT handle rising trade volumes by offering faster and more efficient services to international shipping lines. SAGT holds the distinction of being Sri Lanka's first public-private partnership container terminal and has played an important role in handling container traffic at the Port of Colombo since commencing operations.
The project is expected to increase quay-side productivity by at least 11 per cent, allowing the port to handle higher volumes of both transhipment and domestic container traffic. Colombo Port remains one of the busiest container ports in South Asia and serves as a key transhipment gateway for cargo moving to and from the Indian subcontinent, making efficiency improvements increasingly important as regional trade volumes grow.
In addition to operational improvements, the investment is expected to lower the port's carbon footprint by reducing energy use through more efficient equipment. The project is also expected to generate employment opportunities and support greater participation of women in Sri Lanka's maritime industry, where female representation continues to remain limited.
Source PTI
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