Adani Group denies cancellation of Sri Lanka wind power project

The Sri Lankan government has decided to review the 484 MW project amid local opposition, environmental concerns, and a bribery probe against the group.
Image used for representational purposes.
Image used for representational purposes.(File photo | Express)
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NEW DELHI: The Adani group has refuted reports that the Sri Lankan government has cancelled the 484 MW wind power projects in Mannar and Pooneryn.

As per local media reports, Sri Lanka’s Cabinet, led by President AnuraKumara Dissanayake, has decided to revoke the power purchase agreement with the Group. Report citing officials from Sri Lanka’s Ministry of Energy said the government has cancelled the deal and established a panel to review the entire project.

An Adani Group spokesperson said the project has not been cancelled and the government’s decision to review the process is part of a“standard review process. It said the company remains committed toinvesting $1 billion in Sri Lanka’s green energy sector, driving renewable energy and economic growth.

The decision to cancel the pact comes amid ongoing bribery probe by the US authorities against Adani Group. On 19 November 2024, the group faced charges in the US for allegedly making bribe payments andconcealing transactions from US investors. The group has dismissed these allegations as baseless. The government, under then President RanilWickremesinghe, in May 2024 signed a pact with the Group to procure electricity at a rate of $0.0826 per kWh.

The Group had planned to builda 484 MW wind power plant in coastal areas of Mannar and Pooneryn. Local reports say the project faced major opposition in Sri Lanka due to concerns over pricing. The rate set by the Group was much higher than what local bidders had offered, fuelling criticism of the deal. Environmental groups, including Wildlife and NatureProtection Society and Environmental Foundation, voiced strong objections, citing concerns over potential harm to migratory birds and an inadequate Environmental Impact Assessment (EIA). Local communities, led by Bishop of Mannar, protested, warning that the project could disrupt local industries and threaten livelihoods. President Dissanayake had pledged during his election campaign to cancel the deal, promising to invite global tenders for wind power development in Sri Lanka. Though the original pact was under review by the SL Supreme Court, with a hearing scheduled for March 2025, revocation removes the matter from judicial review.

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