Sri Lanka has revoked a power purchase agreement with Adani Group’s renewable energy unit after allegations of corruption levelled against the Indian conglomerate in the US last year that brought some of its foreign projects under fresh scrutiny.

Adani Green Energy shares fell nearly 6% after reaching a day’s high, following a report that Sri Lanka cancelled a $440 million power purchase agreement with the company.

Adani Group yesterday denied cancellation of its 484 MW wind power project in Mannar and Pooneryn. In a statement Adani said reports of cancellation are “false and misleading.” “We categorically state that the project has not been cancelled.

India's Adani Group's power purchase deal with the Sri Lankan government is intact, the company said on Friday, after the AFP news agency reported it had been revoked, citing a government official and a document.

Sri Lanka has revoked a 2024 power purchase agreement with Adani Green Energy for a proposed wind power plant in the Northern Province, amid corruption allegations, AFP reported on Friday (24 January).

Adani Group has clarified that their power purchase agreement for wind power projects in Sri Lanka has not been revoked, despite reports to the contrary. A standard review of the tariff is underway by the Sri Lankan government,

Earlier, the Sri Lankan media reported that the President Dissanayake-led cabinet had revoked a decision made in May 2024

This is not 1st time the project has been in the news. In 2022, there was a political furore in Sri Lanka over the awarding of wind energy projects to Adani Green Energy without a tendering process