India’s Adani Group has denied the cancellation of its $440 million power purchase deal with Sri Lanka, terming the reports as “false and misleading”.

“Reports that Adani’s 484 MW wind power projects in Mannar and Pooneryn have been cancelled are false and misleading. We categorically state that the project has not been cancelled,” a spokesperson for the Adani Group said today. 

“The Sri Lankan Cabinet’s decision of 02 January 2025 to reevaluate the tariff approved in May 2024 is part of a standard review process, particularly with a new government, to ensure that the terms align with their current priorities and energy policies.” 

The spokesperson further said that Adani remains committed to investing $1 billion in Sri Lanka’s green energy sector, driving renewable energy and economic growth.

According to an AFP report published by India’s Economic Times newspaper on Friday, the new Sri Lankan government has revoked the power purchase deal with Adani Group after a probe into U.S. allegations that the conglomerate’s executives paid bribes to secure Indian power supply contracts.

Sri Lanka opened the probe into the Group’s local projects, the AFP reported, after U.S. authorities indicted billionaire Gautam Adani and other group executives in November on bribery and other charges, all of which the Group has denied.

While President Anura Kumara Dissanayake’s cabinet has revoked the 20-year deal power purchase deal signed in May 2024, it has not cancelled the project and has appointed a committee to review the project, the AFP reported, citing an official document and an energy ministry official.