Colombo: The Sri Lankan government has annulled a power purchase agreement with the Adani Group in light of a United States investigation into bribery and fraud allegations against Gautam Adani, the group’s chairperson and a close associate of Indian Prime Minister Narendra Modi.

According to a statement by Kashmir Media Service, the administration led by President Anura Kumara Dissanayake initiated inquiries into Adani Group projects in Sri Lanka after Gautam Adani was indicted on corruption charges in a U.S. court last November. The charges relate to solar projects in India.

French news agency AFP reported that official documents confirm Sri Lanka’s Cabinet decision to reevaluate the construction of a 484-megawatt wind power plant, planned for the Mannar and Pooneryn regions. This project is also facing challenges in the country’s Supreme Court due to environmental concerns.

Activists have claimed that smaller renewable energy providers could offer electricity at nearly two-thirds of the price proposed by the Adani Group.

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