The agreement concerning the controversial Adani project is currently under review and has not been cancelled, according to the Government.
The Government clarified yesterday (25) that the review was being carried out to ensure the terms of the project aligned with the country’s best interests, particularly in benefiting its citizens and renewable energy sector.
Cabinet Spokesperson and Minister of Health and Mass Media Dr. Nalinda Jayatissa explained that the review committee had already begun its work and was focused on making recommendations for any necessary revisions to the agreement.
In response to recent media reports, Dr. Jayatissa emphasised that the Government had not made any decision to cancel the 484 MW wind power project in Mannar and Pooneryn.
He clarified that the new Government had opted to review the previously agreed-upon project, which did not indicate a cancellation.
However, the Minister revealed that the Government disagreed with the proposed tariffs. As a result, steps are being taken to review and adjust the pricing through amendments and discussions.
These talks aim to determine a feasible purchase plan that aligns with the country’s renewable energy needs without exceeding financial limits, with the efforts comprising part of broader discussions to make necessary changes without scrapping renewable energy projects in Sri Lanka.
Dr. Jayatissa further stated that once the review was complete and presented to the Cabinet, a final decision would be made based on the review committee’s recommendations and the outcomes of the five legal cases being handled by the Attorney General’s Department, with a verdict expected in May.
When asked about potential fraudulent activities concerning the project, Dr. Jayatissa confirmed that investigations were ongoing.
In May 2023, the Government announced a 20-year Power Purchase Agreement (PPA) for Adani’s 484 MW wind plants at a tariff of 8.26 cents per kilowatt-hour (kWh), sparking criticism due to the high price and the absence of competitive bidding.
Under the agreement, Adani Green Energy planned to invest $ 442 million to build two wind power stations, totalling 484 MW, in the Northern Province. However, the proposed tariff of 8.26 cents per kWh was significantly higher than the 4.88 cents per kWh offered by local bidders, leading to controversy.
In response to media reports about a potential project cancellation, the Adani Group issued a statement refuting these claims as “false and misleading”. The company clarified that the Cabinet’s 2 January decision to reevaluate the tariff approved in May 2024 was part of a routine review process conducted by the new Government to ensure alignment with its priorities.
Adani also reaffirmed its commitment to investing $ 1 billion in Sri Lanka’s renewable energy sector, underscoring its role in promoting sustainable energy development and economic growth.