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deal with the Sri Lankan government is intact, the company said on Friday, after the AFP news agency reported it had been revoked, citing a government official and a document.

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 revokes Adani Green Energy power purchase agreement amid corruption allegations, project under review.

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.

The island nation has been trying to fast-track renewable energy projects to hedge against surges in imported fuel costs.

Sri Lanka’s new government plans to renegotiate its power purchase agreement with Adani Group for wind energy projects.

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.

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

This comes after Sri Lankan President Anura Kumara Dissanayake's administration probed the Adani Group's local projects due to the US charges against it