Cabinet Spokesperson, Minister Dr. Nalinda Jayatissa, reaffirmed the Government’s stance on reviewing the wind energy projects awarded to India’s Adani Group, offering clarification on the matter yesterday.
The statement follows a news report claiming that the Government had cancelled all Adani projects in Sri Lanka, which sparked significant controversy. The Adani Group also issued a denial, as its share price dropped following the circulation of the claims on Friday.
Dr. Jayatissa told a media conference at the Government Information Department over the weekend that the Cabinet had not decided to terminate the 484 MW wind power projects in Mannar and Pooneryn. Instead, he said the Government will review the agreement with the Adani Group, specifically the pricing arrangements.
The Minister said that a committee has been formed to review the terms of the project and address concerns. “The project has not been cancelled. We are reviewing the agreement to ensure it benefits the power sector and the citizens of Sri Lanka,” Dr. Jayatissa said.
The review, according to the Minister, will also look into the details of the power purchase agreement signed by the previous administration, particularly the high tariffs stipulated in the deal. The Government has expressed disagreement with the set prices and is working towards renegotiating them to better align with the country’s energy policies and priorities.
The committee tasked with the review has already begun its work, according to the Minister. Dr. Jayatissa said that after the review is completed, the Cabinet will decide on amendments to the agreement. The results of the review will also determine how the project proceeds, with an emphasis on ensuring that it benefits the country’s energy sector.
Dr. Jayatissa said that several court cases related to the project are currently pending. These legal cases, filed primarily by environmentalists, are being closely monitored by the Government. The outcomes of these cases could play a role in shaping the final decision on the project. When asked by the media about allegations of corruption related to the two deals, including those raised by unions aligned with the National People’s Power (NPP), the Minister said that investigations would proceed. He said that the Government is not only reviewing this deal but also investigating how it was made, with appropriate interventions being made as necessary.
The wind energy project, under the agreement with Adani Green Energy, involves the construction of two wind power stations in the North with a combined capacity of 484 megawatts. The total investment in the project is estimated at $442 million, with Adani Green Energy expected to be paid 8.26 cents per kilowatt-hour (kWh) for electricity generated.
In response to reports of the project’s cancellation, the Adani Group issued a statement denying the claims, calling them “false and misleading.” The company said that the Sri Lankan Cabinet’s decision on January 2, 2025, was to reevaluate the tariff approved in May 2024 as part of a standard review process, particularly in light of the new Government’s priorities.
Adani also reiterated its commitment to investing $1 billion in Sri Lanka’s green energy sector, emphasising that the tariff review is a routine procedure to ensure alignment with the country’s energy policies.