The International Finance Corporation (IFC), a member of the World Bank Group, and HSBC have announced a combined investment of up to US$40 million in South Asia Gateway Terminals Ltd. (SAGT) to modernise and decarbonise operations at the Port of Colombo, reinforcing Sri Lanka’s position as a leading maritime and transshipment hub.

The financing package comprises a sustainability linked loan of up to US$20 million from IFC, including funding mobilised through its Managed Co Lending Portfolio Programme, alongside a parallel green loan of up to US$20 million from HSBC. The proceeds will finance advanced twin lift ship to shore cranes designed to improve productivity, operational reliability and energy efficiency.

Steen Knudsen, Chief Executive Officer of SAGT, said the investment demonstrates the company’s commitment to world class infrastructure, sustainable growth and strengthening the Port of Colombo’s role as a leading regional transshipment hub. Gevorg Sargsyan, World Bank Group Country Manager for Sri Lanka and the Maldives, noted that the investment highlights how innovative financing can modernise critical infrastructure while accelerating decarbonisation and long term economic growth. Amesh Dissanayake, Director Banking, Corporate and Institutional Banking at HSBC Sri Lanka, said the green loan will help upgrade essential port equipment, improve operational efficiency and reduce energy consumption and carbon emissions.

The investment marks IFC’s first sustainability linked financing for an infrastructure company in Sri Lanka and its return to the country’s ports sector after two decades. It is expected to enhance the Port of Colombo’s competitiveness, expand cargo handling capacity, create employment opportunities and further integrate Sri Lanka into global trade networks.