News
US indictment of Adani Group could have implications on projects in Sri Lanka
The financial outlook of several Adani Group companies linked to key projects in Sri Lanka has been downgraded to negative by S&P Global Ratings following corruption and fraud charges filed in the United States. The developments raise concerns about the future of major infrastructure and renewable energy projects spearheaded by the group in Sri Lanka.
In a press release issued on Friday (22) S&P Global Ratings said the credit rating downgrade includes Adani Ports and Special Economic Zone Ltd. This is a company involved in a terminal project at the Colombo Port. Its BBB- rating has now been assigned a negative outlook, reflecting potential challenges in funding and governance for the company.
Adani Green Energy Ltd. (AGEL), a promoter of the controversial wind power project in Mannar, is not directly rated by S&P. However, the financing arm of the project, AGEL Restricted Group 2, saw its outlook cut to negative, signaling potential risks to the project’s long-term viability.
The downgrade comes as US prosecutors filed charges against the Adani Group and senior executives, alleging bribery of Indian officials to secure solar power contracts. While the group has denied the allegations, asserting that they are baseless, S&P expressed concerns over governance practices and potential damage to investor confidence.
S&P’s report highlights the interconnected nature of Adani Group companies, where governance and financial concerns in one entity can impact others due to shared leadership and management structures. This has implications for the Sri Lankan projects, as the group may face increased borrowing costs or difficulty accessing funds.
“The allegations could renew questions over the group’s governance practices and damage its reputation,” S&P noted. “We will watch for any signs of weaker funding access or concerns from existing lenders, which could be demonstrated by lowering of funding limits, nonrenewal of facilities, or significantly higher credit spreads.”
S&P’s caution is further underscored by the cancellation of a $600 million bond sale by the Adani Group following the indictment, as well as a sharp decline in equity and bond prices across its companies.
The Mannar wind power project, already controversial due to environmental concerns, faces additional uncertainty as S&P warns that the ongoing investigation into the parent company could affect the company’s ability to renew critical contracts, even though its debt is fully secured.
While S&P acknowledged the strong fundamentals of some Adani entities, such as established infrastructure assets and regulated returns, it cautioned that unresolved allegations could impair the group’s funding access and reputation.
S & P said: “The allegations could renew questions over the group’s governance practices and damage its reputation,
“We will watch for any signs of weaker funding access or concerns from existing lenders–which could be demonstrated by the lowering of funding limits, nonrenewal of facilities, or significantly higher credit spreads.
A US indictment of three board representatives of an unrated Adani group entity could affect investor confidence in other Adani group entities (because the founder is on the board of multiple entities within the group), thereby potentially impairing their funding access and increasing their funding costs.”
Latest News
Heat Index at ‘Caution level’ in the Western, Sabaragamuwa, Southern and North-western provinces and in Anuradhapura, Mannar, Vavuniya and Monaragala districts
Warm Weather Advisory
Issued by the Natural Hazards Early Warning Centre of the Department of Meteorology
at 3.30 p.m. on 25 March 2026, valid for 26 March 2026.
The Heat index, the temperature felt on human body is likely to increase up to ‘Caution level’ at some places in the Western, Sabaragamuwa, Southern and North-western provinces and in
Anuradhapura, Mannar, Vavuniya and Monaragala districts.
The Heat Index Forecast is calculated by using relative humidity and maximum temperature and this is the condition that is felt on your body. This is not the forecast of maximum temperature. It is generated by the Department of Meteorology for the next day period and prepared by using global numerical weather prediction model data.
Effect of the heat index on human body is mentioned in the above table and it is prepared on the advice of the Ministry of Health and Indigenous Medical Services.
ACTION REQUIRED
Job sites: Stay hydrated and takes breaks in the shade as often as possible.
Indoors: Check up on the elderly and the sick.
Vehicles: Never leave children unattended.
Outdoors: Limit strenuous outdoor activities, find shade and stay hydrated.
Dress: Wear lightweight and white or light-colored clothing.
Note:
In addition, please refer to advisories issued by the Disaster Preparedness & Response Division, Ministry
of Health in this regard as well. For further clarifications please contact 011-7446491.
By Shamindra Ferdinando
A spokesperson for the US Embassy in Colombo declared that the United States and Sri Lanka maintain a long-standing defence partnership, grounded in transparency, mutual respect, and shared interests.
The official said so in response to The Island query regarding President Anura Kumara Dissanayake’s recent bombshell disclosure, in Parliament, that his government declined to allow the US Air Force to use the Mattala Rajapaksa International Airport, following the eruption of the latest West Asia war.
We sought views of the US on President Dissanayake’s claim against the backdrop of Sri Lanka being a party to the Acquisition and Cross-Servicing Agreement (ACSA) since 2007. Sri Lanka extended the ACSA in 2017, for another 10-year period, and its extension comes up next year.
The President revealed that the US had requested permission to use Mattala, between 04 and 08 March.
Claiming that the request had been made on 26 February, two days before the war began, President Dissanayake said that the US had sought to land two aircraft, carrying eight anti-ship missiles, but that the request had been turned down to maintain Sri Lanka’s neutrality. The President revealed that the aircraft were to come from a US base in Djibouti.
The US embassy pokesperson explained that questions related to operational movements, including ‘Operation Epic Fury’, should be directed to the Department of War (DOW) in Washington.
Camp Lemonnier is the primary base of operations for US Africa Command in the Horn of Africa. China, too, has its only overseas military base in Djibouti in the vicinity.
Military sources said whatever various interested parties said about US-Sri Lanka relations, the former provided significant intelligence support during last phase of the conflict that enabled the Navy to hunt down floating LTTE arsenals in international waters. Of the eight LTTE vessels sunk, the US backed four hits with specific intelligence, sources said.
News
No decrease in remittances from workers due to Gulf conflict, but significant drop in tourist arrivals – CB Governor
Sri Lanka’s worker remittances had not seen a decrease despite the ongoing conflict in West Asia, Central Bank (CBSL) Governor, Dr. Nandalal Weerasinghe said yesterday.
“Based on currently available data, they have not seen a decline in remittances. In fact, according to that we have observed, is a slight increase in remittances in the past few days, ” the Governor said at a media conference held at the Central Bank head office in Colombo.
Governor Weerasinghe also mentioned that he had not seen any reports about Sri Lankans returning to the country from the Middle East due to the ongoing conflict.
The Central Bank Governor, however, acknowledged that there had been a decrease in tourist arrivals. He confirmed that tourist arrivals had decreased by around 17 percent due to the current volatile situation in the Middle East.
Meanwhile, the Central Bank of Sri Lanka has decided to maintain the Overnight Policy Rate (OPR) at the current level of 7.75%, following its latest Monetary Policy Board meeting.
By Hiran H Senewiratne
UN votes to recognise enslavement of Africans as ‘gravest crime against humanity’
Meta and YouTube found liable in landmark social media addiction trial
Showers expected in the Western and Sabaragamuwa provinces and in Galle and Matara districts after 2.00 pm.
Heat Index at ‘Caution level’ in the Western, Sabaragamuwa, Southern and North-western provinces and in Anuradhapura, Mannar, Vavuniya and Monaragala districts
US dodges question on AKD’s claim SL denied permission for military aircraft to land
No decrease in remittances from workers due to Gulf conflict, but significant drop in tourist arrivals – CB Governor
‘Dates have the highest sugar content to fight Coronavirus’
Sunday Island 27 December – Headlines
#SundayIsland 17th December – Headlines
Sunday Island – 28th March
Sunday Island Headlines – 21 March
Sunday Island – 21st February – Headlines
-
Features3 days agoTrincomalee oil tank farm: An engineering marvel
-
News6 days agoCIABOC tells court Kapila gave Rs 60 mn to MR and Rs. 20 mn to Priyankara
-
Features6 days agoScience and diplomacy in a changing world
-
Features3 days agoThe scientist who was finally heard
-
News1 day agoJapanese boost to Sri J’pura Hospital, an outright gift from Tokyo during JRJ rule
-
News5 days agoColombo, Oslo steps up efforts to strengthen bilateral cooperation in key environmental priority areas
-
News1 day agoSenior citizens above 70 years to receive March allowances on Thursday (26)
-
News3 days agoSubstandard coal deepens energy crisis, warns former CEB Chief