India's Adani Group's power purchase deal with the Sri Lankan government is intact, the company said on Friday, after the AFP news agency reported it had been revoked, citing a government official and a document.

This is not 1st time the project has been in the news. In 2022, there was a political furore in Sri Lanka over the awarding of wind energy projects to Adani Green Energy without a tendering process

Sri Lanka has revoked a 2024 power purchase agreement with Adani Green Energy for a proposed wind power plant in the Northern Province, amid corruption allegations, AFP reported on Friday (24 January).

Sri Lanka has revoked a power purchase deal with India's Adani Group after a probe into U.S. allegations that the conglomerate's executives paid bribes to secure Indian power supply contracts, according to an AFP report published by the Economic Times newspaper on Friday.

Earlier, the Sri Lankan media reported that the President Dissanayake-led cabinet had revoked a decision made in May 2024

Adani Green Energy's stock experienced a decline following the news of Sri Lanka's termination of the power purchase agreement, reaching a daily low of Rs 1,008.

Reports that Adani Group's 484 megawatts (MW) wind power projects in Sri Lanka's northern Mannar and Pooneryn districts have been cancelled are false and misleading, an Adani Group spokesperson said Friday.