The International Finance Corporation (IFC), a member of the World Bank Group, and HSBC have announced a joint investment of up to $40 million in South Asia Gateway Terminals (Pvt) Ltd. (SAGT) to modernize and decarbonize operations at the Port of Colombo, Sri Lanka’s premier maritime gateway. The financing aims to strengthen the port’s competitiveness, resilience, and sustainability, reinforcing its role as South Asia’s leading transshipment hub. The package includes a sustainability‑linked loan of up to $20 million from IFC, with $8.57 million mobilized through IFC’s Managed Co‑Lending Portfolio Program (MCPP), alongside a parallel green loan of up to $20 million from HSBC. Funds will be used to acquire advanced twin‑lift ship‑to‑shore cranes, boosting productivity, operational reliability, and energy efficiency to meet rising global trade demands. This marks IFC’s first sustainability‑linked financing for infrastructure in Sri Lanka and its return to the port sector after two decades. IFC first partnered with SAGT in 1999 to finance Sri Lanka’s first public‑private partnership container terminal, helping establish Colombo as a regional transshipment hub. The new investment is expected to raise quay‑side productivity by at least 11 percent, expand capacity for both transshipment and domestic traffic, reduce carbon emissions, and create more opportunities for women in the sector. Sri Lanka’s strategic location at the crossroads of major shipping routes makes the Port of Colombo vital to global trade, with nearly half of worldwide container traffic passing nearby. The port contributes around 2.5 percent of GDP, anchoring the country’s logistics and trade integration. “At SAGT, we are committed to shaping the future of Sri Lanka’s maritime industry through continuous investment in world‑class infrastructure that drives productivity, enhances operational excellence, and reinforces the Port of Colombo’s position as a leading regional transshipment hub. As IFC’s first sustainability‑linked financing for an infrastructure project in Sri Lanka, this milestone underscores our commitment to pioneering sustainable growth and setting a new benchmark for the industry,” said Steen Knudsen, CEO, SAGT. “When trade moves, economies follow. As IFC’s first sustainability‑linked financing for infrastructure in the country, this investment demonstrates how innovative financing can modernize essential economic assets, accelerate decarbonization and drive long‑term, sustainable growth,” saidGevorg Sargsyan, Country Manager, World Bank Group in Sri Lanka and Maldives. “Our international reach and global expertise support us to play a prominent role in financing the transition in the sectors where it matters most. Given its strategic importance to Sri Lanka, HSBC is committed to supporting the maritime and logistics sector as it modernizes and transitions to a lower‑carbon future. Our parallel green loan of up to $20 million will enable SAGT to upgrade critical port equipment, improving productivity and reliability while reducing energy consumption and CO₂ emissions. This is an example of how sustainable finance can deliver practical, measurable outcomes,” said Amesh Dissanayake, Director Banking, HSBC Sri Lanka. The investment aligns with the World Bank Group’s Country Partnership Framework for Sri Lanka, supporting the government’s ambition to strengthen the nation’s role as a regional logistics hub and deepen integration into global trade networks. (Newswire)
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