Sri Lanka revokes power purchase deal with Adani Group

Sri Lanka revokes Adani Group power deal amid U.S. bribery probe, sparking concerns and reviews from partners and investors.

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 (January 24, 2025).

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 But two Ministry sources told Reuters they were still reviewing the project and the power purchase deal had not been revoked.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.