US Agency's $500 Million Loan to Sri Lanka's Adani-backed Port Under Scrutiny

The U.S. International Development Finance Corporation is still assessing a $500 million loan for a Sri Lanka port project associated with the Adani Group, amid bribery allegations against Gautam Adani and others. The agency is ensuring due diligence before finalizing the loan, given the legal concerns raised.

The U.S. International Development Finance Corporation, which had previously agreed to lend over $500 million for the development of a Sri Lankan port backed by the Adani Group, is reevaluating the project following allegations of bribery involving the group's founder, Gautam Adani, and other executives, Bloomberg News reported on Sunday.

The agency has not yet finalized the loan agreement, an official noted, emphasizing ongoing due diligence processes. This financing deal, originally announced last November, aimed to support a significant port terminal project in Colombo, partly undertaken by India's Adani Group.

In a related development, U.S. authorities have accused Adani and seven associates of bribing Indian government officials to secure contracts potentially worth $2 billion in profits over two decades. The Adani Group has dismissed these charges as 'baseless' and expressed intent to explore all legal avenues. Both the agency and the Adani Group declined to comment outside regular business hours.

(With inputs from agencies.)