US DFC Scrutinizes Colombo Port Project Amid Adani Group Controversies

The US International Development Finance Corporation is currently conducting due diligence on the Colombo port terminal project in Sri Lanka, which it is partially financing. This comes after allegations were made against the Chairman of the Adani Group by the US Department of Justice. While a $500 million loan has not yet been finalized with the company, Adani Group owns a portion of the project.

Amidst allegations and investigations, Adani Group’s various multinational projects are also being scrutinized. Accused of involvement in a $250 million bribery scam, the group faced setbacks when the Kenyan government cancelled a $2.5 billion deal with them. Another project in Kenya, involving the construction and management of power transmission lines at an airport, was affected by these allegations.

The Colombo Port project, a joint venture between John Keells Holdings, Sri Lanka Ports Authority, and Adani Group, commenced in 2021 with an estimated cost of $700 million. In November 2023, the US authority announced a loan of approximately $553 million for the port’s construction, aiming to counterbalance Chinese influence in Sri Lanka. Additionally, newly elected Sri Lankan President Anura Kumara Dissanayake pledged to review the approval of Adani Group’s wind power project in the country, further complicating the situation for the conglomerate.

Overall, the Adani Group’s involvement in the Colombo port project is facing scrutiny and review, with legal and political implications both domestically and internationally. This development underscores the complexities and challenges that arise in large-scale infrastructure projects involving multinational entities.

Source