The US International Development Finance Corporation, which partially funds the Colombo port terminal in Sri Lanka, is conducting due diligence on the project following allegations against Adani Group chairman by the US Department of Justice. The US agency has yet to reach a final deal with the company on the $500 million loan. The Adani Group owns part of the project.
Following the claims made in an indictment order against Gautam Adani and his six collaborators, not only the chairman and the group are under investigation, but also its multiple multinational projects. Adani, who is accused of fraud in a $250 million bribery scam, has felt the heat of the allegations as the Kenyan government cancels a $2.5 billion deal with the group. The Kenyan government and Adani Energy Solutions announced an agreement to build, upgrade, and expand electrical transmission lines and capital at Nairobi’s Jomo Kenyatta International Airport (JKIA), with the Adani Group managing the project for 30 years.
The Adani Group signed a deal to build Colombo Port in 2021. The project is a joint venture between Sri Lanka’s John Keells Holdings and the Sri Lanka Ports Authority (SLPA), with the Gautam Adani-led business holding the largest share. Earlier estimates were that the project would cost about $700 million.
In November 2023, the US agency announced a loan of roughly $553 million to establish the Colombo Port. The joint venture was viewed as a balancing effort against China’s influence in Sri Lanka. China constructed the neighboring Colombo International Container Terminal (CICT) and the Hambantota Port.
Apart from this, newly elected Sri Lankan President Anura Kumara Dissanayake promised during the election campaign that if won, he would rethink the previous government’s approval of the Adani Group’s wind power project. Before the US allegations appeared, the Adani Group was already under scrutiny in Sri Lanka under the new administration. Furthermore, the issue was raised in the country’s Supreme Court.
