India's Adani Group said on Monday it had opened an $800 million container terminal in Sri Lanka, right next to a similar facility operated by a Chinese company.
The Adani development at Sri Lanka's main seaport in Colombo is widely seen as a counter to the rival Chinese terminal and as a means for India to secure a foothold at the strategic facility.
The launch of the Adani-operated facility came a day after Indian Prime Minister Narendra Modi concluded a state visit to Sri Lanka, during which he secured defence and energy deals with Colombo.
"The commencement of operations at CWIT (Colombo West International Terminal) marks a momentous milestone in regional cooperation between India and Sri Lanka," billionaire chairman Gautam Adani, a key ally of Modi, said in a statement.
Sri Lanka lies at a key halfway point along the main east-west international maritime route and Colombo is a major transhipment hub for South Asia.
The company said it had completed 600 metres (660 yards) out of a final 1,400-meter-long berth with a depth of 20 metres that can handle the largest container ships.
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'Global maritime map'
"Not only does this terminal represent the future of trade in the Indian Ocean, but its opening is also a proud moment for Sri Lanka, placing it firmly on the global maritime map," Adani said.
The joint venture went ahead despite the Indian conglomerate withdrawing in December a request for a US government-backed $533 million loan for the construction.
The move followed an indictment in New York in November 2024, which accused the Adani Group of deliberately misleading international investors as part of a bribery scheme. Adani has denied any wrongdoing.
The other partners in the Adani Port venture are Sri Lanka's publicly listed John Keells Holdings and the state-owned Sri Lanka Ports Authority.
Construction began in early 2022, with the first phase featuring eight automated ship-to-shore cranes and 18 gantry cranes.
There were no public statements from either side during Modi's visit about Adani's withdrawal from another venture, a $442 million wind power project in the north of Sri Lanka.
That withdrawal followed a decision by President Anura Kumara Dissanayake's administration to revoke a power purchase agreement with the Adani Group in order to negotiate lower energy prices.
Dissanayake's party had strongly criticised the deal as "corrupt" and called for it to be renegotiated.