Adani Group denies cancellation of Sri Lanka power purchase deal, says it is committed to invest $1 bn for green projects

The Adani Group, led by Gautam Adani, has clarified that the reports of Sri Lanka officially revoking a power purchase agreement with the Indian conglomerate due to corruption allegations are inaccurate and deceptive.

Early in the day news agency AFP reported that Sri Lankan President Anura Kumara Dissanayake's administration conducted an investigation into the Adani group's local projects following allegations of bribery and concealing payments from investors by the US on November 19, 2024.

Clarifying the news report, the Adani Group issued a statement: "Reports that Adani’s 484 MW wind power projects in Mannar and Pooneryn have been cancelled are false and misleading. We categorically state that the PPA has not been revoked. The Sri Lankan Cabinet’s decision of 2 Jan 2025 to reevaluate the tariff approved in May 2024 is part of a standard review process, particularly with a new government, to ensure that the terms align with their current priorities and energy policies. Adani remains committed to investing $1 billion in Sri Lanka’s green energy sector, driving renewable energy and economic growth."

Adani Green Energy's stock experienced a decline following the news of Sri Lanka's termination of the power purchase agreement, reaching a daily low of Rs 1,008. Shares of Adani Green Energy were down by 0.93% and closed at Rs 1,011.95.

Published on: Jan 24, 2025, 4:37 PM IST