Sri Lanka Refutes Cancellation of Adani Wind Power Project Amid Pricing Review

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Sri Lanka denies cancellation of Adani wind power projects, focusing on renegotiating tariffs to align with national priorities.


Sri Lanka’s government has put rumors to rest regarding the cancellation of the Adani Group’s ambitious wind power projects in Mannar and Pooneryn, clarifying that the projects remain on course despite ongoing reviews. Cabinet Spokesman and Minister Dr. Nalinda Jayathissa has firmly denied claims that the $442 million project has been terminated, stating instead that the government is renegotiating terms to better align with national energy priorities.

Speaking at a press conference, Dr. Jayathissa emphasized that the current administration had annulled a cabinet decision from the previous government, which pertained to a high power purchasing agreement. A special committee has been appointed to reevaluate the project and address existing concerns.

“The project has not been cancelled,” Dr. Jayathissa declared. “We are currently renegotiating the pricing with the Adani Group to ensure the terms are more favorable for the country’s energy policies and economic conditions.”


The Controversial Tariff Dispute

At the heart of the controversy lies the proposed tariff of 8.26 US cents per kilowatt-hour (kWh) by Adani Green Energy SL Ltd. This rate significantly exceeds the 4.88 US cents per kWh offered by local bidders, sparking criticism and raising questions about fairness and cost efficiency.

Adani Group has defended its position, asserting that the higher tariff reflects the advanced technology and scale of the projects. The company also reiterated its commitment to investing $1 billion in Sri Lanka’s renewable energy sector, signaling long-term partnership goals.

In a statement addressing the media reports, Adani Group called the cancellation rumors “false and misleading.” The company further clarified that the Sri Lankan government’s January 2025 decision to reevaluate the tariff is a standard process under a new administration to ensure alignment with national interests.


Legal and Environmental Challenges

The projects, which aim to generate 484 megawatts of wind energy across Mannar and Pooneryn, have also attracted legal scrutiny. Environmentalists have raised concerns about potential ecological impacts, filing several legal cases to challenge the projects.

Minister Jayathissa assured that the government is carefully monitoring these legal developments. “We will consider all factors, including environmental impacts, legal outcomes, and financial feasibility, before making a final decision,” he stated.

The government’s cautious approach underscores the need to balance energy development with environmental sustainability and public interest.


Adani’s Vision for Green Energy in Sri Lanka

Despite the controversy, Adani Group has reaffirmed its dedication to Sri Lanka’s green energy ambitions. The company’s proposed wind power projects in Mannar and Pooneryn represent a significant step towards reducing the country’s reliance on fossil fuels.

Adani’s investment in Sri Lanka is part of a broader strategy to expand its renewable energy footprint across South Asia. By leveraging advanced technology and large-scale infrastructure, the company aims to position itself as a leader in the region’s transition to sustainable energy.


Economic and Strategic Implications

The Adani wind power projects carry significant economic and strategic implications for Sri Lanka. With a total investment of $442 million, the projects are expected to create jobs, boost local economies, and reduce the country’s dependence on costly fuel imports.

Moreover, the partnership with Adani Group reflects Sri Lanka’s efforts to strengthen ties with India, a key regional ally. Enhanced cooperation in the renewable energy sector could pave the way for further bilateral investments and economic collaboration.

However, the high tariff proposed by Adani has sparked debate about whether the deal is financially prudent for Sri Lanka. Critics argue that accepting higher costs could burden the country’s energy consumers and undermine the competitiveness of local energy providers.


What’s Next for the Adani Projects?

As the government’s review process unfolds, all eyes are on the final decision regarding the Adani wind power projects. The appointed committee is expected to deliver its findings in the coming months, providing a clearer picture of the project’s future.

Minister Jayathissa assured that the government remains committed to transparency and public interest. “Our priority is to ensure that Sri Lanka benefits from these projects without compromising on financial or environmental sustainability,” he emphasized.

For now, the Adani Group remains steadfast in its commitment to Sri Lanka, dismissing rumors of cancellation and pledging continued investment in the country’s renewable energy sector.


The Adani Group’s wind power projects in Sri Lanka symbolize a crucial step towards a greener future, but they also highlight the complexities of balancing economic, environmental, and political considerations. As the government renegotiates terms and navigates legal challenges, the outcome of this partnership will have lasting implications for Sri Lanka’s energy landscape.

By addressing public concerns and ensuring equitable terms, the Sri Lankan government aims to forge a path that benefits all stakeholders while advancing the nation’s renewable energy goals.

FAQs

  1. Has the Adani wind power project in Sri Lanka been cancelled?
    No, the project has not been cancelled. The government is renegotiating the pricing to align with national priorities.
  2. What is the total investment for the Adani wind power project in Sri Lanka?
    The total investment is $442 million.
  3. What are the proposed locations for the Adani wind power projects?
    The projects are located in Mannar and Pooneryn.
  4. What is the controversy regarding the Adani wind power project?
    The controversy centers around the high proposed tariff of 8.26 US cents per kWh compared to local bidders’ rates of 4.88 US cents per kWh.
  5. Why is the Sri Lankan government reviewing the project?
    The government is reevaluating the terms to ensure they align with current energy policies and financial priorities.
  6. What is Adani Group’s response to the cancellation rumors?
    Adani Group has denied the cancellation claims, calling them false and misleading, and confirmed their commitment to investing in Sri Lanka.
  7. What legal challenges are associated with the project?
    Several environmental groups have filed legal cases, raising concerns about the project’s ecological impact.
  8. How much energy will the Adani wind power projects generate?
    The projects aim to generate a combined capacity of 484 MW of wind energy.
  9. What steps has the Sri Lankan government taken regarding the project?
    The government has annulled a previous cabinet decision and appointed a committee to review the project and renegotiate the terms.
  10. What is Adani’s long-term plan for Sri Lanka’s energy sector?
    Adani Group has committed to investing $1 billion in Sri Lanka’s renewable energy sector, signaling a strong long-term partnership.