Gautam Adani-led Adani Group has clarified that reports of Sri Lanka officially revoking a power purchase agreement with the Indian conglomerate due to corruption allegations are inaccurate and misleading.

Earlier in the day, the AFP news agency reported that the administration of Sri Lankan President Anura Kumara Dissanayake had launched an investigation into the Adani Group’s local projects following allegations of bribery and hidden payments to investors by the US on November 19, 2024.

Clarifying the news, the Adani Group issued a statement: “Reports that Adani’s 484 MW wind power projects at Mannar and Pooneryn have been canceled are false and misleading. We categorically state that the PPA has not been revoked The decision of the Sri Lanka Cabinet on 2 January 2025 to reassess the tariff approved in May 2024 is part of a standard review process, especially with a new government, to ensure the terms align with its current priorities and energy policies, Adani remains committed to investing $1 billion in Sri Lanka’s green energy sector, driving the energy renewable energy and economic growth”.

Shares of Adani Green Energy saw a decline following news of Sri Lanka’s termination of the power purchase agreement, hitting a daily low of Rs 1,008. Shares of Adani Green Energy fell 0.93% to close at Rs 1,011.95.