The US will provide $553 million in financing for a port terminal in Sri Lanka’s capital being developed by Indian billionaire Gautam Adani, as New Delhi and Washington look to curtail China’s influence in South Asia.
The funding from International Development Finance Corp. underscores renewed US and Indian efforts to loosen Beijing’s sway over Sri Lanka after Colombo borrowed heavily to splurge on Chinese port and highway projects before its economic meltdown last year. For Adani, US money may offer a stamp of legitimacy after allegations of fraud by short seller Hindenburg Research erased billions from the conglomerate’s market value earlier this year.
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