Sri Lanka Cabinet Spokesman Minister Dr. Nalinda Jayathissa has refuted media reports claiming that the 484 MW wind power projects awarded to India’s Adani Group in Mannar and Pooneryn have been terminated.
Speaking at a special press conference, the minister clarified that the government had only annulled a cabinet decision by the previous administration related to high power purchaaing agreement. A committee has now been appointed to review the project and address concerns.
“The project has not been cancelled,” Minister Jayathissa said. “The government is renegotiating the pricing with the Adani Group to ensure the terms align with the country’s current priorities and energy policies.”
He further noted that several legal cases have been filed against the project by environmentalists, and the government is closely monitoring their progress before making a final decision.
Under the deal, Adani Green Energy was to build two 484 megawatts wind power stations in the northern region, with a total investment of $442 million. The company would be paid 8.26 cents per kilowatt-hour (kWh).
The Adani Group, in response to the reports, issued a statement categorically denying the cancellation claims, calling them “false and misleading.”
“The Sri Lankan Cabinet’s decision of 02 Jan 2025 to reevaluate the tariff approved in May 2024 is part of a standard review process, particularly with a new government, to ensure alignment with their priorities,” the company said.
Adani also reiterated its commitment to investing $1 billion in Sri Lanka’s green energy sector.
The controversy stems from the Adani Green Energy SL Ltd’s proposed tariff of US cents 8.26 per kilowatt hour, which significantly exceeds the US cents 4.88 per kilowatt hour offered by local bidders. (Newswire)