Sri Lanka’s port expansion project led by Indian conglomerate Adani Group is progressing as planned, an official was reported as saying on Tuesday.

“Construction at the Colombo West International Terminal remains ongoing, with phase one of the project still set for completion in early 2025,” Sirimevan Ranasinghe, chairman of the Sri Lanka Ports Authority, told Bloomberg.

Ranasinghe is also a minority shareholder in the project. He informed the news agency that the project would be continuing as per their agreement inked with Adani Ports and Special Economic Zone.

Adani Group is playing a prominent part in expanding the country’s port infrastructure. The Colombo terminal project, which involves a infusion of $1-billion, marks the largest foreign direct investment in Sri Lanka’s port sector.

Ranasinghe said that US financing had not been finalised, and added that it was up to the joint-venture company developing the project to procure the requisite financing.

The US International Development Finance Agency committed a $553-million loan last year to help develop the Colombo port, a project majority-owned by Adani Ports.

The US funding was widely seen as a way to counterbalance China’s large infrastructure investments and counter the country’s influence in the region.

The tenure of the loan was to be for 20 years, with an equity contribution of 30% by the partners. Adani Group was looking at close to 16% of return on investments from the project.

--With inputs from Bloomberg