Following US indictments against Gautam Adani on fraud and conspiracy charges, Sri Lanka’s President told the Economic Times that he is unconcerned by the Adani Group’s dealing with other countries, but is instead focused on the conglomerate’s relationship with Sri Lanka.
“We don’t have any concerns over how they (Adani) work with other countries. What is important for us is how they work with us”, Dissanayake told the Economic Times.
Gautam Adani, the head of Adani group and close ally of Narendra Modi, is accused of orchestrating a $250m bribery scheme and concealing it to raise money in the US. The Adani Group has denied the allegations, describing them as “baseless”. This indictment follows a damning report by short seller Hindenburg Research which accused the organisation of "brazen" stock manipulation and accounting fraud.
These scandals have negatively impacted the Adani and contributed to some countries and partners distancing themselves from the organisation. Andhra Pradesh, a key southern state in India, is considering suspending a power purchase deal with the organisation.
The organisation has also faced difficulties in Bangladesh where the interim government has accused the group of breaching a multi-billion-dollar agreement by withholding tax benefits that a power plant central to the deal received from New Delhi. Bangladeshi authorities are planning to reopen the 25-year old deal and press for a resolution. The Adani group has denied any wrongdoing.
The Adani group has plans to invest $442 million in two wind power stations in Sri Lanka and Adani ports as well as a $553 million terminal project at the Colombo port. Sri Lanka however had decided to review the projects after the US inditements. The Adani Group has withdrawn its request for a for a $553-million financing arrangement with the US International Development Finance Corporation; instead these funds will come from its own sources.
In his interview with the Economic Times, Dissanayake stated:
“They (Adani) are completing the west terminal of Colombo port. They are also looking at investments in the energy sector. There are so many investments they have looked at but unfortunately, a case has been filed by people who have environmental concerns”.
He added that a case had "unfortunately" been filed against a proposed power plant in Mannar.
“We will be weighing the pros and cons of the case that is pending in the court, (as well as) the consensus of the people, and then see what is best. Environmental concerns are as important as investment for Sri Lanka,” Dissanayake concluded.
