IFC and HSBC invest $40 Million to modernize Colombo Port

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.