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

Published on: Jan 24, 2025, 15:29:41 IST

By HT News Desk

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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.

Also Read: Adani Green appoints independent law firms to review US indictment: Report

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.

Also Read: 5 facts about Gautam Adani's daughter-in-law - Diva Jaimin Shah

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.

Also Read: 5 facts about Jeet Adani, Gautam Adani's son getting married on Feb 7

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.

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HT News Desk
Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs. The HT News Desk covers politics, elections, government policies, the economy, business and markets, science and technology, the environment, law and order, infrastructure, education, climate issues and geopolitics, while closely tracking developments across states, institutions and global capitals. The team also leads coverage of major breaking news events, policy announcements, court proceedings, natural disasters, public emergencies and significant international developments. Reports published by the newsdesk are based on information gathered from reporters on the ground, official statements, government agencies, court records, regulatory filings, recognised institutions and other authoritative sources. Stories undergo editorial scrutiny and verification processes to ensure accuracy, fairness and relevance, and are updated as events evolve and additional information becomes available. Whether covering a key political decision in New Delhi, an economic policy shift affecting millions, a landmark court ruling or a major global event, the HT News Desk aims to provide readers with reliable, fact-based journalism that delivers not only the latest developments but also the context and analysis needed to understand their wider implications.Read More

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