Day after, Sri Lanka says it has not cancelled Adani wind power project
A newspaper reported that New Delhi was told that the tariff rates offered by the Indian conglomerate were too high while other firms had quoted lower tariffs
The Sri Lankan government has denied news reports that it has axed a controversial Adani wind power project over high tariff rates.
A senior minister said in Colombo that the government of President Anura Dissanayake had taken no decision yet to revoke the project in the northwestern coastal district of Mannar.
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The Daily Mirror newspaper reported on Saturday that Colombo had informed New Delhi that the tariff rates offered by the Indian conglomerate were too high while other firms had quoted far lower tariffs.
Colombo tells Delhi
This message was also conveyed to Indian leaders when Dissanayake and foreign minister Vijitha Herath visited New Delhi last month.
Herath told the Daily Mirror that Indian officials said they would be open to discussions over the project with the Sri Lankan government.
He was quoted as saying that the project was locked in a court case on account of environmental concerns and that the government would wait for a verdict. The next court hearing is due in May.
No decision yet
“Therefore, we have not taken any decision to revoke the project as we await the final verdict of the court,” the minister said.
“Right throughout, our main concern has been the high tariff rates and we have conveyed this to the Indian side. There has been no decision to revoke the project.”
Note to cabinet
Meanwhile, energy minister Kumara Jayakody has said he presented a note to the cabinet on the current status of the project with a view to reviewing it in line with the policy of the new government.
Otherwise, there has been no decision to cancel the project, he said.
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Campaign issue
During the election campaign last year, the ruling National People’s Power (NPP) railed against the Adani project which was agreed to in May 2024 by the previous government.
It was earlier decided to procure electricity at US $0.0826 per kilowatt from the Adani facility in Mannar. The 484-megawatt wind power plant is yet to be set up.
Adani’s denial
Earlier, the Adani Group described as “false and misleading” reports that its project in Mannar had been cancelled.
An Adani Group spokesperson clarified that the Sri Lankan cabinet decision of January 2 to re-evaluate the tariff approved in May 2024 was part of a routine process.
Adani’s commitment
Such re-evaluation was a standard procedure undertaken by a new government to ensure the terms align with its priorities and energy policies, it said.
The spokesman said Adani remains steadfast in its commitment to investing $1 billion in Sri Lanka’s green energy sector.