Key Takeaways
- Adani Group denied reports of cancellation of its 484-MW wind power projects in Sri Lanka, labeling them as “false and misleading.”
- The Sri Lankan cabinet’s decision to reevaluate the project tariff is part of a standard review process.
- Adani Group remains committed to investing $1 billion in Sri Lanka’s renewable energy sector, despite ongoing scrutiny.
Adani Group Responds to Wind Power Agreement Reports
Adani Group recently addressed media reports suggesting that Sri Lanka had revoked the power purchase agreement for its 484-MW wind power projects in Mannar and Pooneryn. The conglomerate firmly stated that these claims are “false and misleading.”
In a statement, Adani Group clarified that the project has not been cancelled, despite news agency AFP reporting that the Sri Lankan government officially scrapped the agreement amid corruption allegations against the company. The statement noted that the decision by the Sri Lankan cabinet on January 2, 2025, to reassess the previously approved tariff from May 2024 is a standard part of the review process that often occurs with a new government. This reassessment aims to ensure the agreement meets current national interests and energy policies.
An unnamed official from the Sri Lankan energy ministry reportedly confirmed the revocation of the power purchase agreement but indicated that the project itself remains active, as a committee has been set up to review it in detail. Requests for comments from the Sri Lankan government went unanswered by press time on Friday.
Despite these developments, Adani Group expressed its ongoing commitment to invest $1 billion in Sri Lanka’s green energy sector, which the company believes will contribute to the country’s renewable energy initiatives and economic growth. As part of this investment, Adani Group had initially pledged over $440 million specifically for the construction of wind power plants in the coastal regions of Mannar and Pooneryn.
The scrutiny surrounding Adani’s projects in Sri Lanka comes amid broader investigations into the conglomerate, particularly following bribery charges against its billionaire founder, Gautam Adani, in the United States late last year. Sri Lankan President Anura Kumara Dissanayake’s administration has initiated probes into the company’s local activities in light of these issues.
However, Dissanayake has reiterated that the focus should remain on the Adani Group’s operations within Sri Lanka, rather than their dealings in other countries. “We don’t have any concerns over how they (Adani) work with other countries. What is important for us is how they work with us,” he stated in an interview with ET last month. He emphasized that the government is primarily concerned with how Adani’s investments align with Sri Lanka’s developmental goals, highlighting that the administration is open to collaboration as long as the projects meet national interests.
This situation illustrates the complexities surrounding international investment in the context of local governance and scrutiny, particularly within emerging economies like Sri Lanka, where energy policy and foreign investment must align with changing political landscapes. Adani Group’s steadfast stance and continued investment plans indicate a commitment to navigating these challenges carefully.
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