Corporate Grapevine

Published: Dec 29, 2021
Updated: Dec 29, 2021

Adanis’s port woes in Sri Lanka, Myanmar

The Adani group has lost a crucial port project in Sri Lanka. Instead of the Adani group, the Sri Lankan government has now decided to rope in China Harbour Engineering Company (CHEC) to construct the second phase of Colombo Port’s East Container Terminal (ECT).

The Sri Lankan Rajapaksa administration in February had scrapped the deal signed by the former Sirisena-Wickremesinghe government with the Adani group, citing resistance from port worker unions. The Adani group had refused to agree to the new terms set by Sri Lanka.

This is the second big project which the Adani group exited in 2021. In October, the group announced that it would exit from a port project in Myanmar. The project had run into controversy after it was reported that Adani group officials met Senior General Min Aung Hlaing, the army chief who led a coup against the elected government. The Adani group had previously said it had won the Yangon International Terminal project last year through a global competitive bid which entailed an investment of $ 290 million.