The Adani Group’s wind power projects in Sri Lanka are facing uncertainty after the island nation’s government revoked the pricing agreement for the projects. However, the government has stopped short of canceling the projects entirely.
A committee has been appointed to review the 484 MW wind projects in the Mannar and Pooneryn districts and recommend necessary changes.
“There was no decision to cancel the Mannar and Pooneryn projects, but rather to appoint a committee to review them,” clarified government spokesperson Nalinda Jayathissa. “The committee has started its work, and once the review is complete, we will determine what changes need to be made.”
The decision comes amid criticism of the 20-year power purchase agreement signed by the previous administration in May 2024. The agreement set a tariff of USD 0.826 per unit for Adani’s wind plants, which was reportedly higher than the prices offered by local bidders. In response, the new government revoked the pricing agreement to reassess the project’s terms.
“We are not agreeable to the prices proposed,” said Jayathissa. “As a result, the pricing agreement was revoked, and the committee was tasked with revising the projects, including its pricing structure.”
The projects have also faced legal challenges, with five court cases—primarily filed by environmental groups—pending against the agreement. Petitioners argue the projects could threaten biodiversity and migratory birds in the area.
In a media statement issued on Friday, the Adani Group denied reports of project cancellation, calling them “false and misleading.”
“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,” the statement read.
The company explained that the Sri Lankan Cabinet’s decision on January 2 to reevaluate the May 2024 tariff 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.”
Adani reaffirmed its commitment to Sri Lanka, stating, “Adani remains committed to investing USD 1 billion in Sri Lanka’s green energy sector, driving renewable energy and economic growth.”