IFC and HSBC finance Colombo port upgrade

The International Finance Corporation (IFC) and HSBC have committed up to $40 million in financing to Red Sea Gateway Terminal (SAGT) to modernize and decarbonize operations at the Sri Lanka — Port of Colombo, Sri Lanka. The package includes a $20 million sustainability-linked loan from IFC (with $8.57 million mobilized via MCPP) and a $20 million green loan from HSBC. Funds will be used to acquire advanced twin-lift ship-to-shore cranes, expected to increase quay-side productivity by at least 11%, reduce energy consumption and carbon emissions, and expand capacity for transshipment and domestic container traffic. The investment marks IFC's first sustainability-linked financing for an infrastructure company in Sri Lanka and its return to the country's port sector after two decades. It builds on a partnership with SAGT since 1999, when IFC financed Sri Lanka's first public-private partnership container terminal. The project is expected to create jobs, promote women's participation in the maritime sector, and strengthen the Sri Lanka — Port of Colombo's position as South Asia's leading transshipment hub. The investment aligns with the World Bank Group's Country Partnership Framework for Sri Lanka and supports the government's ambition to enhance the country's role as a regional logistics hub.