IGI Logo

Sri Lanka has revoked a power purchase agreement with Indian conglomerate Adani Group following allegations of corruption, according to an AFP report that was published by the Economic Times newspaper on Friday.

The AFP reported that Sri Lanka opened probes into Adani Group's local projects after U.S. authorities, in November, indicted billionaire Gautam Adani and other group executives on allegations they paid bribes to secure Indian power supply contracts.

The Adani Group has denied the charges, calling them "baseless."

Sri Lanka had entered a 20-year power purchase agreement with Adani Green Energy in May 2024 for two wind power stations developed by the company.

Sri Lankan President Anura Kumara Dissanayake's cabinet decided earlier this month not to proceed with the deal, the AFP said, citing an energy ministry official.

While the government has revoked the agreement, the project is not cancelled and a committee has been appointed to review the entire project, the AFP reported.

Sri Lanka's Power and Energy Ministry declined to comment. The Adani Group did not immediately respond to a request for comment.

Adani Green Energy shares were trading 1% lower in Mumbai.