Sri Lanka has revoked a power purchase deal with India's Adani Group after a probe into U.S. allegations that the conglomerate's executives paid bribes to secure Indian power supply contracts, according to an AFP report published by the Economic Times newspaper on Friday.

The Adani Group on Friday categorically denied reports claiming that Adani's 484 MW wind power projects in Mannar and Pooneryn in Sri Lanka have been cancelled.

Reports that Adani Groups 484 megawatts (MW) wind power projects in Sri Lankas northern Mannar and Pooneryn districts have been cancelled are false and misleading, an Adani Group spokesperson said Friday.

Sri Lanka has canceled a power purchase agreement with Adani Group, amid corruption allegations against the company's founder, Gautam Adani . The decision was taken by President Anura Kumara Dissanayake's administration, which is now reviewing the proposed wind power project.

The decision is in line with a desire to secure lower electricity tariffs, as activists had claimed smaller renewable projects in Sri Lanka were selling power at much lower rates, the AFP report said.

Sri Lanka’s Cabinet of Ministers chaired by President Anura Kumara Dissanayake has revoked a decision announced in June last year to award a controversial 484 MW of wind power plants in Mannar and Pooneryn to Adani Green Energy SL Ltd.

Sri Lankan President Anura Kumara Dissanayake began investigations into Adani's local projects after founder Gautam Adani faced bribery allegations from the United States last year

This comes after Sri Lankan President Anura Kumara Dissanayake's administration probed the Adani Group's local projects due to the US charges against it