The International Finance Corporation (IFC) and HSBC will invest up to US$40 million in South Asia Gateway Terminals (SAGT) to modernize operations at the Port of Colombo.
The financing package includes a sustainability-linked loan of up to US$20 million from IFC and a green loan of up to US$20 million from HSBC. IFC’s financing includes US$8.57 million raised through its Managed Co-Lending Portfolio Program.
SAGT will use the funding to buy new twin-lift ship-to-shore cranes. The equipment will help the terminal load and unload cargo faster. It will also improve energy efficiency and reduce carbon emissions.
Why the investment matters?
The project is expected to increase quay-side productivity by at least 11%. It will also expand capacity for transshipment and domestic cargo.
The Port of Colombo handles one of the busiest transshipment operations in South Asia. Nearly half of the world’s container traffic passes close to Sri Lanka. The port also contributes about 2.5% of the country’s GDP.
The investment supports efforts to strengthen Colombo’s position as a regional logistics hub while meeting growing global trade demand.
SAGT Chief Executive Officer Steen Knudsen said the investment reflects the company’s commitment to building world-class port infrastructure. He said the project will improve productivity, strengthen operations and support sustainable growth.
World Bank Group Country Manager for Sri Lanka and Maldives Gevorg Sargsyan said efficient ports are essential for economic growth. He said the investment shows how sustainable financing can modernize key infrastructure and support long-term development.
HSBC Sri Lanka Director Banking Amesh Dissanayake said the green loan will help SAGT upgrade critical port equipment. He said the investment will improve reliability, lower energy use and reduce carbon emissions.
First sustainability-linked port financing
The project marks IFC’s first sustainability-linked financing for an infrastructure project in Sri Lanka. It also marks IFC’s return to the country’s port sector after two decades.
IFC first partnered with SAGT in 1999 to help finance Sri Lanka’s first public-private partnership container terminal. The new investment supports the World Bank Group’s plan to strengthen the country’s logistics sector and deepen its links with global trade.
IFC, HSBC Back Port of Colombo Upgrade With US$40 Million Investment
Last modified: July 21, 2026
