Despite an earlier setback in Kenya, the Adani Group is set to control a major port in another country.
The Indian group is set to control a major investment in Sri Lanka, the Colombo Port West Container Terminal scheduled for soft launch in February 2025.
The Adani Group secured a majority stake in this project through a Build-Operate-Transfer (BOT) agreement signed in September 2024.
Minor protests occurred in Colombo following the decision by the Sri Lankan government over the handing over of the port to the Adani Group which is considered a foreign company.
Adani to take control of Colombo Port in Sri Lanka
However, these demonstrations failed to gain significant momentum, partly because China already manages a terminal at the Colombo Port.
Following the U.S. indictment, Sri Lankan Ports Minister Bimal Rathnayaka, stated that Sri Lanka had no objections to Adani financing the Port project using its own funds.
Despite international legal scrutiny, the Adani Group is committed to continuing its investments in Sri Lanka, especially in the green energy sector.
The company plans to develop wind power projects in Mannar and Pooneryn, which are part of a broader strategy to promote renewable energy and drive economic growth in the region.
Also Read: US Firm Behind Adani Scandal Investigation Announces Closure
In November 2024, the Adani Group, along with its chairman Gautam Adani and several senior executives, were indicted by the United States Department of Justice.
The charges revolve around a complex scheme involving over $250 million in bribes paid to Indian government officials to secure lucrative solar energy contracts.
According to the allegations, the Adani Group executives made false and misleading statements to U.S. investors and global financial institutions to raise billions of dollars.
Following the indictment by the US Government, Kenya’s President William Ruto cancelled multimillion-dollar deals with the Adani Group.
President Ruto Cancels the Indian Company Projects in Kenya
These deals included significant projects such as the expansion of Jomo Kenyatta International Airport (JKIA) and various energy initiatives with the Kenya Electricity Transmission Company (KETRACO).
In his State of the Nation address on November 21, 2024, President Ruto emphasized his administration’s commitment to transparency and accountability.
“In the face of undisputed evidence or credible information on corruption, I will not hesitate to take action,” said President Ruto.
“Based on new information provided by our investigative agencies and partner nations – that the procuring agencies within the Ministry of Transport and the Ministry of Energy and Petroleum immediately cancel the ongoing procurement process for the JKIA Expansion Public Private Partnership transaction, as well as the recently concluded KETRACO transmission line Public Private Partnership contract, and immediately commence the process of onboarding alternative partners,” added the Head of State.
Also Read: Ruto Stops JKIA Adani Takeover
Before the cancellation of the Adani deals by President Ruto, the deals had faced wide scepticism from a majority of Kenyans.
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