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.”
News
No PC polls this year, says Tilvin
The much-delayed Provincial Council (PC) elections cannot be held this year due to financial and legal constraints, JVP General Secretary Tilvin Silva has said in Jaffna.Silva said so, fielding questions from journalists after the opening of the NPP coordination office in the Jaffna District on Saturday.
When asked whether the government was under Indian pressure to conduct the Provincial Council elections soon, Silva answered in the negative, claiming that Sri Lankan and Indian governments maintained close and friendly relations with a strong level of understanding.
He said budgetary allocations had been made for the PC elections, but the government had been compelled to divert resources for disaster relief following the impact of Cyclone Ditwah. According to Silva, nearly Rs. 500 billion had to be allocated for relief measures, making it difficult to hold the elections this year. He further said legal complications in the electoral reform process had also contributed to the delay in holding the PC elections, noting that a parliamentary committee had been appointed to determine the electoral systems under which the PC polls should be conducted. Once the committee submitted its report and if no further issues arose, the elections could possibly be held next year, he said.
Silva also said the government had taken measures to strengthen reconciliation and development in the North by releasing lands previously occupied by military camps and improving road infrastructure.He added that empowerment initiatives were being implemented under the Praja Shakthi programme and that both Sri Lanka and India were continuing to work in close cooperation.
News
Weather conditions worsen, displacing 31,000 people
More than 31,000 people across Sri Lanka have been affected by worsening weather conditions, as the southwest monsoon intensifies ahead of its full establishment, raising fears of renewed flooding in vulnerable low-lying areas, the Disaster Management Centre (DMC) has warned.
The DMC has said 31,072 individuals from 7,983 families have already been impacted by persistent rain, strong winds and rising water levels across multiple districts, with the situation most severe in the Gampaha District where 15,313 people from 3,950 families have been affected and one death reported.
Officials have cautioned that the scale of disruption could worsen as the southwest monsoon is expected to fully establish over the island around May 26–27, bringing heavier and more sustained rainfall to the southwestern region.
At present, 18 safety centres are in operation, sheltering 1,724 displaced persons from 446 families. One person has been injured and 859 houses have been partially damaged. Two houses have been destroyed.
The Department of Meteorology has forecast increased rainfall over the coming days, warning that conditions are likely to deteriorate further as monsoon activity strengthens.
Flood-hit areas remain widespread, with river systems still under pressure despite a brief easing in rainfall on Saturday. The Kelani River has returned to normal levels, but minor flooding persists along the Kalu River basin, particularly in the Millakanda area, where tributary water levels remain elevated.
Low-lying areas in Bellapitiya, Horana, continue to be inundated, while traffic on the Bulathsinhala–Kalutara road remains disrupted due to flooding in Diyakaduwa. Authorities have also flagged continued risk in Putupawula and Ellagawa along the Kalu River.
The Attanagalu Oya basin is also slowly receding, though residents in Dunamale have been urged to remain on alert. Several homes in Ja-Ela remain underwater, with residents alleging that delayed repairs to a damaged canal embankment worsened the flooding.
In a fresh blow to infrastructure, the Swarna Hansa Podi Ela bridge in Ja-Ela collapsed on Saturday evening, further disrupting local transport links, while the main Ja-Ela–Gampaha bus route remains submerged in parts of Yakkaduwa.
Meteorologists have warned that rainfall is expected to intensify again from May 26 to 28, when the southwest monsoon is likely to be formally declared over Sri Lanka, raising the risk of further flooding and landslides in already saturated areas.
by Norman Palihawadane and Chaminda Silva
News
Dickoya double murder suspect arrested
Police said a suspect wanted in connection with the murder of an elderly couple inside a shop in Dickoya town, Hatton, had been arrested on Saturday evening (23).
The arrest was made in the Bogawantalawa police area. Acting on a tip-off, the police arrested him while he was hiding in a house on a tea estate.
Police said stolen gold jewellery had been recovered.
Preliminary investigations revealed that the suspect, originally from Badulla, had been residing in Dickoya after his marriage.
Earlier on Saturday, Hatton Police released CCTV footage of the suspect and sought public assistance to trace and arrest him.
According to police, the suspect allegedly slit the throat of the elderly woman and killed her husband using a sharp weapon on Thursday (21) before fleeing with gold jewellery valued at around 18 sovereigns, including a necklace and earrings.
Investigations further revealed that the suspect had arrived in Dickoya town on the morning of May 21 and visited several jewellery shops claiming he intended to purchase a gold necklace, while loitering in the area.
Police said that around 1.15 pm, he entered the couple’s shop and remained concealed inside the premises before allegedly carrying out the attack.
Hatton Police added that the suspect is believed to have committed the murders and left the shop around 5.30 pm the same day before going into hiding.
by Norman Palihawadane
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