The Adani Group has withdrawn its request for a $553 million loan from the US International Development Finance Corporation (DFC) to develop the Colombo West International Terminal in Sri Lanka, following bribery allegations against its executives. The project will now be funded through internal resources, highlighting the impact of the US indictment on the conglomerate’s international dealings.
In a significant development, the Adani Group has decided to withdraw its request for a $553 million loan from the US International Development Finance Corporation (DFC) for the development of the Colombo West International Terminal (CWIT) in Sri Lanka. This decision comes in the wake of bribery allegations against the conglomerate’s executives, including its founder, Gautam Adani2.
The US Department of Justice and Securities and Exchange Commission have indicted Adani and several other executives for allegedly paying over $250 million in bribes to Indian government officials to secure solar energy contracts. The charges also include making false statements to US investors about their anti-bribery practices2.
In response to these allegations, the Adani Group has opted to self-fund the CWIT project through its internal accruals and capital management plan. The project, which was initially scheduled to begin operations this month, is now expected to be commissioned by early 20251.
The CWIT project is a joint venture between Adani Ports and Special Economic Zone Ltd (APSEZ), Sri Lanka Ports Authority (SLPA), and local conglomerate John Keells Holdings. The terminal is part of a broader effort to enhance Sri Lanka’s port infrastructure and counter China’s growing influence in the region3.
Despite the challenges posed by the US indictment, Gautam Adani has maintained that “every attack makes us stronger” and has consistently denied any misconduct. The withdrawal of the US loan indicates potential funding limitations for the Adani Group from American institutions1.
This case highlights the complexities of international business dealings and the impact of legal and ethical issues on large-scale projects. It also underscores the importance of transparency and compliance with anti-corruption laws in global investments.