The Sri Lankan government has revoked a power purchase agreement with the Adani Group following a United States investigation into bribery and fraud allegations against its chairperson, Gautam Adani, AFP reported on Friday.

President Anura Kumara Dissanayake’s administration had launched inquiries into Adani Group projects in Sri Lanka after Gautam Adani was indicted in November by a US court over alleged corruption related to solar projects in India.

In May 2024, former President Ranil Wickremesinghe had approved an agreement to purchase electricity at $0.0826 per kilowatt-hour from an Adani wind power facility planned in the island’s northwest. However, an unidentified energy ministry official told AFP that Dissanayake’s cabinet revoked the deal earlier this month.

“The government has revoked the power purchase agreement, but the project is not cancelled,” AFP quoted the official as saying. “A committee has been appointed to review the entire project.”

AFP cited official documents as confirming that Sri Lanka’s cabinet decided to reassess the construction of the 484-megawatt wind power plant, which is planned for the Mannar and Pooneryn regions. The project is also being challenged in the country’s Supreme Court over environmental concerns.

Activists have argued that smaller renewable energy providers offered electricity at nearly two-thirds the price proposed by the Adani Group.

The conglomerate is also involved in building a $700 million deep-water container terminal called the Colombo West International Terminal at the Port of Colombo in Sri Lanka.

Gautam Adani, his nephew Sagar Adani and six others were indicted last month by the United States Attorney’s Office for the Eastern District in New York for allegedly agreeing to pay over $265 million, or nearly Rs 2,236 crore, in bribes to Indian government officials between 2020 and 2024 to obtain contracts for Adani Green Energy.

The contracts were expected to yield a profit of $2 billion, or nearly Rs 16,880 crore, over 20 years.

The United States Securities and Exchange Commission has summoned Gautam Adani and Sagar Adani in connection with the allegations.

The Adani Group has denied the accusations, calling them “baseless”.

After the allegations came to light, Kenya also ordered the cancellation of a procurement process that would have given the Adani Group control of the country’s primary airport.