New Green Financing to Supercharge Port of Colombo

COLOMBO (News 1st); The International Finance Corporation (IFC), a member of the World Bank Group, and HSBC have committed up to US$40 million in financing to South Asia Gateway Terminals (Pvt) Ltd. (SAGT) to modernize and decarbonize operations at the Port of Colombo, strengthening Sri Lanka’s position as a key maritime and transshipment hub in South Asia.The investment is expected to enhance the port’s competitiveness, resilience and sustainability while deepening Sri Lanka’s connectivity to global markets and reinforcing the Port of Colombo’s status as one of the region’s leading gateways for international trade.The financing package consists of a sustainability-linked loan of up to US$20 million from IFC, including up to US$8.57 million mobilized through IFC’s Managed Co-Lending Portfolio Program (MCPP), alongside a parallel green loan of up to US$20 million from HSBC.The transaction is being highlighted as an example of how private-sector capital can be leveraged to support large-scale infrastructure development.Funds from the investment will be used to acquire advanced twin-lift ship-to-shore cranes, which are expected to significantly improve operational efficiency at the terminal.The new equipment will increase productivity, enhance reliability, reduce energy consumption and enable SAGT to handle growing volumes of cargo with faster and more efficient services for global shipping lines.The project marks IFC’s first sustainability-linked financing initiative for an infrastructure company in Sri Lanka and its return to the country’s port sector after a gap of two decades.The latest investment also builds on IFC’s longstanding relationship with SAGT, which began in 1999 when the organization supported Sri Lanka’s first public-private partnership container terminal. Since then, SAGT has played a key role in transforming the Port of Colombo into one of South Asia’s premier transshipment hubs, earning recognition for operational excellence, innovation and private sector participation within the maritime industry.According to project estimates, the investment will increase quay-side productivity by at least 11 percent, enabling the port to manage larger volumes of both transshipment and domestic container traffic. The modernization initiative is also expected to contribute to lower carbon emissions, supporting the port’s sustainability goals while improving overall operational performance.In addition to strengthening Sri Lanka’s maritime infrastructure, the project is expected to generate employment opportunities and promote greater participation of women in the port and logistics sector, where female representation remains comparatively low.