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Sri Lanka’s new government will reconsider Adani Group’s $440 million wind power project due to concerns over national energy sovereignty.
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The project faces legal challenges, with petitioners raising issues about environmental risks, transparency, and financial viability.
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President Anura Kumara Dissanayake’s National People’s Power alliance aims to reassess major deals made under the previous administration.
Sri Lanka’s newly elected government, led by President Anura Kumara Dissanayake, has announced that it will review the approval granted to Adani Group’s major wind power project. The decision was made during a Cabinet meeting on October 7, and a final decision will be communicated after the new Cabinet is installed following the parliamentary elections on November 14 [1).
The Adani Group had committed to investing over $440 million in the project, which aims to develop 484 megawatts of wind power in the northeastern regions of Mannar and Pooneryn under a 20-year agreement. However, critics argue that the agreed tariff of $0.0826 per kWh would result in financial losses for Sri Lanka, advocating for a reduced rate of $0.005 per kWh.
President Dissanayake’s National People’s Power alliance had promised to cancel the Adani project during their campaign, citing concerns over national energy sovereignty. The project has faced legal challenges in the Supreme Court, with petitioners raising issues about environmental risks and transparency in the bidding process ¹. This decision marks a significant point in Sri Lanka’s energy policy, with the new government indicating its intention to reassess major deals made under the previous administration.
The outcome of this review will have significant implications for Sri Lanka’s energy sector and its relationship with foreign investors. As the country navigates its energy policy, the government must balance its desire for economic growth with concerns over environmental sustainability and national sovereignty.
