Tue Nov 26 18:30:54 UTC 2024: ## US Doubts Delay Adani’s Colombo Port Project Amidst Corruption Allegations

**Colombo, Sri Lanka/New Delhi, India –** The future of the Adani Group’s Colombo Western International Terminal (CWIT) project hangs in the balance following the US Department of Justice (DoJ) and Securities and Exchange Commission (SEC) indictments against Adani Group CEO Gautam Adani and his nephew. The US International Development Finance Corporation (DFC), which pledged a $553 million loan to the project last year, has stated it hasn’t disbursed any funds and is conducting further due diligence.

This announcement casts doubt on the project’s viability, particularly given the Sri Lankan government’s serious consideration of the indictments and its pending review of the project. An official report from Sri Lanka’s Foreign and Finance Ministries is expected soon, following which a final decision will be made.

The DFC’s cautious approach comes amidst a series of controversies surrounding Adani Group projects globally. These include investigations into potential bribery in India, a cancelled Kenyan energy and airport deal, a halted French investment, and scrutiny of Adani’s Haifa port operations. A Bangladesh court has also ordered an inquiry into an Adani power supply agreement.

The Adani Group, which had touted the DFC’s loan commitment as a validation of its governance, has yet to comment on the situation. The Indian Ministry of External Affairs also did not respond to inquiries regarding US cooperation in the investigation.

While the first phase of the CWIT’s construction nears completion, the project’s launch, scheduled for February 2025, is now uncertain. The situation further complicates the already fragile Sri Lankan economy, where the project was seen as a crucial investment. The Sri Lankan government, elected on an anti-corruption platform, is reviewing all Adani projects in the country. The Adani Group also faces ongoing controversy over a wind power project in Sri Lanka, currently challenged in the Supreme Court.

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