Adani’s $550 million deal for Sri Lankan port under threat as US revisits deal

A US government agency is revisiting its decision to provide over $550 million in financing for a Sri Lankan port project backed by the Adani Group following serious bribery allegations involving the group's founder, Gautam Adani, and other executives, as reported by Reuters.

The US Department of Justice has accused Adani and seven associates of bribing Indian officials with $265 billion to secure lucrative contracts, including a major solar power plant project set to generate $2 billion in profits over the next two decades.

The financing in question, agreed upon in November last year, was intended for a port terminal project in Colombo, Sri Lanka, in which the Adani Group holds a significant stake. However, with the bribery accusations now under investigation, the US International Development Finance Corporation (DFC) is reassessing the situation.

The agency has indicated that it is closely examining the implications of the allegations and reaffirmed its commitment to maintaining strict standards of integrity and compliance in its projects and partnerships. As of now, no funds have been disbursed under the loan agreement.

The Adani Group has firmly rejected the bribery allegations, describing them as unfounded and vowing to take all legal actions available to clear its name. These developments come as the US attorney’s office recently detailed the accusations against Adani, alleging his direct involvement in the bribery scheme between 2020 and 2024.

The allegations also suggest that several meetings were held with Indian government officials to facilitate the scheme, with evidence reportedly found on multiple mobile phones.

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