Sri Lanka is weighing U.S. bribery accusations against Adani Group and Fitch put some company bonds on a watch list for a possible downgrade, as fallout widens from indictments of some key executives of the Indian conglomerate.

For the new government, acting upon deals with Adani is more than a legal or economic issue. It is a test of its commitment to fighting corruption.

Adani Group's troubles deepened as two more credit rating agencies cut their outlook for the Indian conglomerate.

Colombo: Sri Lanka has opened an investigation into the local investments of India's Adani Group in the wake of US bribery charges against its tycoon founder, government spokesman Nalinda Jayatissa said Tuesday.

(Reuters) - A U.S. agency that agreed to lend more than $500 million to a Sri Lanka port development backed by the Adani Group said it is still conducting due diligence on the project in the wake of bribery allegations against the group's billionaire founder Gautam Adani and other top executives, Bloomberg News reported on Sunday.

A US agency that agreed to lend more than $500 million to an Adani Group-backed port development in Sri Lanka said it’s still conducting due diligence on the project, following bribery allegations against the conglomerate’s billionaire founder and other top executives.

Ratings agency Moody's said on Tuesday that it has cut the outlook on the ratings of seven Adani entities to 'negative' from 'stable', citing the US indictment of Chairman Gautam Adani and others on alleged bribery charges,

Fitch Ratings has placed several Adani Group bonds on "watch negative" following the U.S. indictment of key executives from the Indian conglomerate on bribery charges. This includes bonds from Adani Energy Solutions Ltd,