Setback for Adani as Sri Lanka revokes power purchase deal after bribery allegations by US: Report

This comes after Sri Lankan President Anura Kumara Dissanayake's administration probed the Adani Group's local projects due to the US charges against it

Sri Lanka has revoked its power purchase agreement with the Adani Group due to the corruption allegations in the US against the conglomerate, news agency AFP reported, citing unnamed energy ministry sources.

Adani Group chairman Gautam Adani. (PTI Photo)

HT.com couldn't independently verify the authenticity of the development.

This comes after Sri Lankan President Anura Kumara Dissanayake's administration probed the Adani group's local projects after allegations by the US on November 19, 2024, of bribery and hiding these payments from investors.

The Adani group had dismissed the US charges as “baseless.”

The Sri Lankan deal was made by Dissanayake's predecessor, who agreed to buy electricity at $0.0826 per kilowatt from an Adani wind power complex which is yet to be built in the island nation's northwest.

Since then, several activists have challenged the agreement, arguing that smaller renewable projects were selling electricity at two-thirds the price of Adani, according to the report.

Adani's proposed $442 million, 484-megawatt wind power plant in Sri lanka's Mannar and Pooneryn coastal areas was approved for construction in February 2023, but the project has since been stalled by court challenges.

Recently, a panel had been set up to "re-evaluate" the construction, according to the report.

Dissanayake came to power in September 2024, with the promise of tackling corruption and bringing back stolen Sri Lankan assets said to be stashed abroad, the report read.