The Sri Lankan government has revoked a power purchase agreement with Indian conglomerate Adani Group following a probe into U.S. allegations that the conglomerate's executives paid bribes to secure Indian power supply contracts, reports said on Friday.
President Anura Kumara Dissanayake's administration has launched an investigation into the company's local projects after accusations of bribery surfaced against Adani Group founder Gautam Adani in the United States last year.
The previous government had signed an agreement in May 2024 to procure electricity at a rate of $0.0826 per kilowatt from an Adani wind power facility planned for the island’s northwest region. However, a senior energy ministry official revealed that Dissanayake’s cabinet decided to terminate the deal earlier this month.
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 But two Ministry sources told Reuters they were still reviewing the project and the power purchase deal had not been revoked.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 agreement had faced opposition from activists, who argued that smaller renewable energy projects were offering electricity at nearly two-thirds of the cost proposed by Adani.