Adani Group’s sudden reversal: Rejecting a US loan to develop Sri Lanka’s port, a move that comes amid controversy surrounding Gautam Adani’s reputation in the US.

Adani Group, led by industrialist Gautam Adani, has announced that it will not seek funding from the US International Development Finance Corporation (DFC) for its Colombo West International Terminal (CWIT) project in Sri Lanka. The DFC had agreed to a $553 million loan in 2023, but the project’s development has been put on hold following the US Department of Justice (DOJ) and Securities and Exchange Commission (SEC) indictments against Adani and his nephew. The DOJ accused them of bribing Indian officials and hiding it from American investors. Adani Group has denied the allegations, but the DFC has stalled the loan disbursement pending an agreement between Adani Ports and the Sri Lanka Ports Authority. As a result, Adani Ports will fund the project with its own resources. The project is critical for the US to counter China’s growing influence in the region, but the US’s involvement in the project has been put on hold. The Colombo port is a geopolitically important region, and the US’s withdrawal from the project will have implications for its influence in the region.