The Port of Colombo is the largest and busiest transshipment port in the Indian Ocean. It has been operating at more than 90 percent utilization since 2021, signaling its need for additional capacity. The US government investment of USD 553 million in Colombo port has come as a surprise. There were no public indications of this massive investment in one of the country’s most strategic assets. The investment will be in the Western Terminal of Colombo port which was offered to the Adani Group in India after the joint Japan-India bid to obtain control over the long established Eastern Terminal was blocked by trade union protests. The trade unions took the position that they did not wish the workers to be put under new management and to sell a national asset to foreigners. But the hand of geopolitics was believed to be behind the protests as China too controls a major terminal in Colombo port.