Sri Lanka Revokes Adani Wind Power Pricing Agreement, Forms Review Committee

Colombo: The Sri Lankan government said it revoked the pricing agreement for Adani Group's wind power projects in the island nation and appointed a committee to review them. Government spokesperson Nalinda Jayathissa clarified on Saturday that while the Adani Green Energy wind power projects in Mannar and Pooneryn districts have not been cancelled, the government has rejected the power purchase prices negotiated by the previous administration in 2023. 

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Sri Lanka revokes Adani pricing, reviews projects

“There was no decision to cancel the Mannar and Pooneryn projects but rather to appoint a committee to review them. The committee has started its work, and once the review is complete, we will determine what changes need to be made,” Jayathissa said. The previous government, led by Ranil Wickremesinghe, signed a 20-year power purchase agreement in May 2024 for the 484 MW Adani wind plants at a rate of USD 0.826 per unit. The agreement faced criticism as local bidders reportedly offered lower unit prices.

Adani Group Wind Projects in Sri Lanka Under Review Amid Pricing and Environmental Concerns

“We are not agreeable to the prices proposed. As a result, the pricing agreement was revoked, and the committee was tasked with revising the projects, including its pricing structure,” Jayathissa added. He also said five court cases, mostly filed by environmental organisations, are pending against the agreement with the Indian conglomerate Adani Group. Environmental groups had filed petitions claiming that the projects endanger biodiversity and threaten migratory birds. Earlier on Friday, the Adani Group issued a media statement denouncing reports of the cancellation of its wind projects in Sri Lanka, describing them as "false and misleading."

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"Reports that Adani’s 484 MW wind power projects in Mannar and Pooneryn have been cancelled are false and misleading. We categorically state that the project has not been cancelled," it said. The Sri Lankan Cabinet's decision of Jan 2 to reevaluate the tariff approved in May 2024 is "part of a standard review process, particularly with a new government, to ensure that the terms align with their current priorities and energy policies", the statement said. "Adani remains committed to investing USD 1 billion in Sri Lanka’s green energy sector, driving renewable energy and economic growth," it said.