New Delhi, November 28 (IANS). Sri Lanka Ports Authority has expressed confidence in its agreements with Adani Group regarding its project. Earlier, Abu Dhabi’s global sovereign fund International Holding Company (IHC) and the Tanzanian government had said that despite the Adani Group company being named in an ongoing investigation in the US, there would be no impact on their business relations with the group.
Adani Group is playing a key role in a port expansion project in Sri Lanka. A $1 billion investment is proposed in the Colombo Terminal, which is the largest foreign direct investment in the country’s port sector.
Sri Lanka Ports Authority Chairman Admiral Sirimevan Ranasinghe (Retd) clarified in response to a question that there has been no discussion on canceling the project. He said that this project will start in the next few months.
It is noteworthy that Sri Lankan government spokesperson Nalinda Jayatissa had said on November 26 that in view of the US investigation into a bribery transaction case, Sri Lanka has started investigating the local investments of Adani Group.
Abu Dhabi’s IHC also said, “The partnership with Adani Group reflects our confidence in their contribution to the green energy and sustainability sectors.”
IHC is among the world’s largest sovereign funds and manages assets of more than $100 billion.
In April 2022, IHC had invested about $ 500 million in Adani Group’s renewable energy company Adani Green Energy and power company Adani Transmission and $ 1 billion in the group’s flagship company Adani Enterprises.
The Tanzanian government also reaffirmed its commitment to its agreements with Adani Ports, saying, “There are no concerns regarding ongoing projects and all contracts fully comply with the country’s legislation.”
Apart from this, top investors also expressed confidence in the shares of Adani Group on Thursday. GQG Partners said that it does not appear that such action will have any impact on the company’s business. He said that the business being done by the company comes under critical infrastructure and is regulated by the Government of India. In most cases these involve long term contracts. We believe the company’s fundamentals remain strong.
–IANS
AKJ/GKT
