IFC, HSBC provide up to $40 Million to modernize Colombo Port Terminal

The International Finance Corporation (IFC) and HSBC will provide up to $40 million in financing to modernize operations, improve productivity and reduce carbon emissions at South Asia Gateway Terminals (SAGT) in the Port of Colombo.

The investment is expected to strengthen the port’s competitiveness, resilience and sustainability while supporting its position as South Asia’s leading transshipment hub and improving Sri Lanka’s connections to global markets.

The financing package includes a sustainability-linked loan of up to $20 million from IFC, a member of the World Bank Group. This includes up to $8.57 million mobilized through IFC’s Managed Co-Lending Portfolio Program.

HSBC will provide a separate green loan of up to $20 million.

The funds will be used to purchase advanced twin-lift ship-to-shore cranes. The new equipment is expected to increase productivity, improve operational reliability and reduce energy use, allowing SAGT to provide faster and more efficient services to global shipping companies as trade demand grows.

The investment is expected to increase quay-side productivity by at least 11 percent and expand the terminal’s ability to handle both transshipment and domestic container traffic.

It will also help reduce SAGT’s carbon footprint, create employment opportunities and provide more opportunities for women in the maritime sector, where women remain significantly underrepresented.

The transaction is IFC’s first sustainability-linked financing for an infrastructure company in Sri Lanka. It also marks IFC’s return to Sri Lanka’s port sector after around 20 years.

IFC’s partnership with SAGT began in 1999, when it financed Sri Lanka’s first public-private partnership container terminal. Since then, SAGT has contributed to establishing the Port of Colombo as a leading regional transshipment hub and has introduced higher standards in operations, innovation and private-sector participation in the country’s maritime industry.

SAGT Chief Executive Officer Steen Knudsen said the company remains committed to investing in world-class infrastructure to increase productivity, strengthen operational standards and reinforce the Port of Colombo’s position as a leading regional transshipment hub.

He said the financing was an important milestone that demonstrated SAGT’s commitment to sustainable growth and setting a new standard for the industry.

World Bank Group Country Manager for Sri Lanka and the Maldives Gevorg Sargsyan said the investment showed how innovative financing could be used to modernize essential economic infrastructure, speed up decarbonization and support long-term sustainable growth.

“When trade moves, economies follow,” Sargsyan said.

HSBC Sri Lanka Director Banking for Corporate and Institutional Banking Amesh Dissanayake said the bank was committed to supporting Sri Lanka’s maritime and logistics sector as it modernizes and moves towards a lower-carbon future.

He said HSBC’s green loan would allow SAGT to upgrade important port equipment while improving productivity and reliability and reducing energy consumption and carbon dioxide emissions.

Sri Lanka is located close to some of the world’s busiest shipping routes, with nearly half of global container traffic passing nearby. The Port of Colombo is central to the country’s strategic position and supports a maritime and logistics industry that contributes around 2.5 percent of Sri Lanka’s gross domestic product.

The investment is also in line with the World Bank Group’s Country Partnership Framework for Sri Lanka and its programme covering ports and logistics.

It supports the government’s ambition to strengthen Sri Lanka’s position as a regional logistics and transshipment hub and deepen the country’s integration into international trade networks.

SAGT, Sri Lanka’s first public-private partnership container terminal, began operations in 1999 with the aim of becoming the most trusted gateway in the Indian Ocean.

The company focuses on teamwork, safety, trust, integrity, customer service and operational excellence. It has also introduced sustainable terminal operations and digital services to make it easier for customers to conduct business.

SAGT is a Board of Investment flagship company. Its shareholders include John Keells Holdings PLC, APM Terminals B.V., Maersk B.V., the Sri Lanka Ports Authority and Peony Investment SA/Evergreen Marine Corporation.

IFC is the world’s largest development institution focused on the private sector in emerging markets. It operates in more than 100 countries and uses financing, expertise and private-sector partnerships to create markets and economic opportunities in developing countries.

During the 2025 financial year, IFC committed a record $71.7 billion to private companies and financial institutions in developing countries.

The Hongkong and Shanghai Banking Corporation Limited is the founding member of the HSBC Group. HSBC operates in 56 countries and territories and had assets worth $3.306 trillion as of March 31, 2026.