By: Staff Writer
November 25, Colombo (LNW): The U.S. International Development Finance Corporation (DFC) announced it is reviewing potential impacts from bribery allegations against Gautam Adani, founder of India’s Adani Group, on a previously approved $553 million loan for a Sri Lankan port project.
This project, located in Colombo, Sri Lanka’s capital, is partially owned by the Adani Group and aims to enhance U.S. influence in the region, counterbalancing China’s presence.
The review comes after U.S. federal prosecutors in New York indicted Gautam Adani and seven associates.
They were accused of orchestrating a $265 billion bribery scheme, allegedly paying Indian officials to secure contracts, including a significant solar power project expected to generate $2 billion in profits over the next two decades.
Sri Lankan experts have expressed concern over the allegations. Nishan De Mel, Executive Director of the Colombo-based think tank Verité Research, emphasized the need for increased vigilance against corruption in Sri Lanka.
De Mel highlighted past corruption cases, such as the investigation into Sri Lankan Airlines’ aircraft purchases from Airbus and revelations from the Pandora Papers implicating local figures.
He urged the country to strengthen anti-corruption measures to avoid entanglement in corrupt dealings.
The DFC, which announced its intention to support the Adani Group’s port terminal project in 2023, has clarified that no final loan agreement has been signed.
An official from the agency stressed that ongoing due diligence will determine whether the project meets its stringent requirements.
The DFC also noted that the bribery charges do not directly involve the Adani subsidiary associated with the Sri Lankan port development.
Meanwhile, Sri Lanka is assessing Adani Group’s proposed wind power projects. The government is expected to review the financial and environmental feasibility of these projects in the coming weeks, according to a representative from the Ceylon Electricity Board.
The Adani Group has denied the bribery allegations and is seeking legal action to contest the charges.
Nonetheless, the controversy raises questions about the company’s business practices and casts a shadow over international partnerships linked to its projects.
The scrutiny from the U.S. agency underscores the importance of ethical standards in global infrastructure investments, especially in regions where major projects intersect with geopolitical interests.
