Sri Lanka has revoked a power purchase deal with India's Adani Group after a probe into U.S. allegations that the conglomerate's executives paid bribes to secure Indian power supply contracts, according to an AFP report published by the Economic Times newspaper on Friday.

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.

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

The island nation has been trying to fast-track renewable energy projects to hedge against surges in imported fuel costs.

Sri Lanka has canceled a power purchase agreement with Adani Group, amid corruption allegations against the company's founder, Gautam Adani . The decision was taken by President Anura Kumara Dissanayake's administration, which is now reviewing the proposed wind power project.

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

Sri Lanka’s new government plans to renegotiate its power purchase agreement with Adani Group for wind energy projects.

Sri Lanka has revoked a power purchase agreement with Indian conglomerate Adani Group following allegations of corruption, energy ministry sources in Colombo said on Friday..President Anura Kumara Dis

India’s Adani Group has denied the cancellation of its $440 million power purchase deal with Sri Lanka, terming the reports as “false and misleading”