Sri Lanka revokes power purchase deal with Adani Group, AFP reports
January 24, 2025 04:35 pm
Sri Lanka has revoked a power purchase deal with India’s Adani Group after a probe into U.S. allegations that the conglomerate’s executives paid bribes to secure Indian power supply contracts, according to an AFP report published by the Economic Times newspaper on Friday.
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.
Sri Lanka’s Power and Energy Ministry declined to comment. But two ministry sources told Reuters they were still reviewing the project and the power purchase deal had not been revoked.
The Adani Group did not immediately respond to a request for comment.
The U.S. allegations had raised concerns among some partners and investors of the group, with at least one Indian state reviewing its power deal with Adani and TotalEnergies halting further investments in the conglomerate.
Overseas, Kenya has scrapped more than $2.5 billion in deals with the Adani Group, including contracts to develop an airport and build power transmission lines, after the U.S. indictment.
Under the power purchase deal, Adani Green Energy was to build two 484 megawatts wind power stations in the South Asian island nation’s northern province, with a total investment of $442 million. The company would be paid 8.26 cents per kilowatt-hour (kWh).
The cash-strapped country, which has suffered from crippling power blackouts and fuel shortages, has been trying to speed green power generation to hedge against surges in imported fuel costs.
The Adani Group is also involved in building a $700 million terminal project at Sri Lanka’s largest port in Colombo.
Adani Green Energy shares were trading 1% lower in Mumbai.
Source: Reuters
--Agencies
