The International Finance Corporation (IFC), a member of the World Bank Group, and HSBC will provide up to $40 million in financing to South Asia Gateway Terminals (SAGT) to modernise and decarbonise operations at the Port of Colombo. The investment is aimed at enhancing the port’s competitiveness, resilience and sustainability while reinforcing its position as South Asia’s leading transshipment hub.
The financing package comprises a sustainability-linked loan of up to $20 million from IFC, including up to $8.57 million mobilised through IFC’s Managed Co-Lending Portfolio Programme (MCPP), along with a parallel green loan of up to $20 million from HSBC.
The proceeds will be used to procure advanced twin-lift ship-to-shore cranes, which are expected to improve operational reliability, increase quay-side productivity and reduce energy consumption. The upgraded equipment will enable SAGT to handle rising cargo volumes more efficiently while offering faster services to global shipping lines.
According to the official announcement, the investment is expected to increase quay-side productivity by at least 11%, expand the terminal’s capacity to handle both transshipment and domestic container traffic, reduce carbon emissions and create new employment opportunities, including greater participation of women in Sri Lanka’s maritime sector.
The transaction marks IFC’s first sustainability-linked financing for an infrastructure company in Sri Lanka and its return to the country’s port sector after more than two decades. IFC had previously partnered with SAGT in 1999 to finance Sri Lanka’s first public-private partnership container terminal, which played a key role in establishing Colombo as a major regional transshipment hub.
