The US International Development Finance Corporation (DFC) has put its proposed $500 million loan to an Adani Group-backed port development project in Sri Lanka on hold, citing ongoing due diligence amidst bribery allegations against Adani Group’s founder, Gautam Adani, and other executives.
The DFC clarified in an official statement that no final agreement has been reached for the loan, which was announced last year as part of the US strategy to expand its influence in Asia and counter China’s regional dominance. The loan was intended to support the construction of a port terminal in Colombo, being developed by Adani Ports and Special Economic Zone Ltd.
“We continue to conduct due diligence to ensure that all aspects of the project meet our rigorous standards before any loan disbursements are made,” a DFC official stated, confirming that the project has not yet reached financial close or signed a loan agreement.
This development follows recent charges filed by US prosecutors against Gautam Adani and others, accusing them of orchestrating a $250 million bribery scheme related to Indian solar energy contracts. The allegations also involve concealing the fraud from US investors. Adani Group has denied the charges and vowed to pursue legal remedies.
Notably, the DFC emphasized that the bribery allegations do not directly implicate the Adani subsidiary involved in the Sri Lanka port project. “We are committed to ensuring that our projects and partners uphold the highest standards of integrity and compliance,” the official added.
Meanwhile, Sri Lanka is separately reviewing Adani Group’s proposed wind power projects. The country’s cabinet is expected to discuss the matter in the coming weeks, according to a spokesman for the Ceylon Electricity Board. The government is assessing the financial viability and environmental implications of the projects.
