Sri Lankan Govt to Reconsider Adani’s $440M Wind Power Project

The new administration in Sri Lanka, under the leadership of Anura Kumara Dissanayake, has indicated a possible change in its position on a significant wind energy initiative that was previously sanctioned for the Adani Group in India. The Attorney General's office notified the Supreme Court that the approval given by the previous government would be reconsidered by the new administration, according to reports.

Adani Green Energy Ltd., overseen a project that faced challenges with its pricing structure, as stated by Foreign Minister Vijitha Herath. Addressing journalists after the Cabinet meeting, Herath emphasized worries about the approved electricity tariff for the project, indicating that the government would reconsider after the parliamentary elections.

The Supreme Court was informed that a definitive ruling would be issued once the new Cabinet was in place after the elections. The NPP alliance, under Dissanayake's leadership, strongly opposed the project, presenting it as a threat to Sri Lanka's energy sector sovereignty and calling for a renegotiation of the deal's terms.

The Adani Group pledged to invest more than $440 million in the construction of 484 megawatts of wind energy in Mannar and Pooneryn in the northeastern areas, as part of a 20-year contract. Nevertheless, the project has faced legal disputes, as petitioners have expressed worries over environmental concerns and transparency during the bidding process.

Any possible cancellation or modification of the agreement would negatively impact Gautam Adani's larger goals in Sri Lanka.