‘False and misleading’: Adani Group denies cancellation of Sri Lanka’s $440 million power purchase deal; Here’s why | Company Business News

The Adani Group has denied reports of the cancellation of its Sri Lanka power power deal, calling the reports as ‘false and misleading’. The spokesperson of the ports-to-power conglomerate issued a statement on Friday, January 24, saying that 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 Sri Lankan Cabinet’s decision of 2 Jan 2025 to reevaluate the tariff approved in May 2024 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 remains committed to investing $1 billion in Sri Lanka’s green energy sector, driving renewable energy and economic growth,” said the Adani Group.

Earlier today, the Daily FT, Sri Lanka’s leading business newspaper, reported that the Cabinet, led by President Anura Kumara Dissanayake, reversed the decision to give a contract for building wind power plants in Mannar and Pooneryn to Adani Green Energy SL Ltd. This decision, made in June last year and sanctioned by Dissanayake’s predecessor, Ranil Wickremesinghe, involved a 484 MW wind power project.

During his election campaign, the current President promised to cancel the deal and invite international tenders to develop wind power in Sri Lanka. Following through on this promise, the Cabinet decided on December 30 to revoke the previous cabinet decision made in May 2024, which had approved the Adani Green Energy project.

In June 2024, the project was awarded to the company by Dissanayake’s predecessor Ranil Wickremesinghe.C oncerns were raised over the arbitrary price of US cents 8.26 per kilowatt hour when the local bidders offered 4.88 cents.

Additionally, several environmental organisations, including the Wildlife and Nature Protection Society and Environmental Foundation Ltd., opposed the project due to inadequacies in the Environmental Impact Assessment.

Mannar is a major habitat for migratory birds. The project was opposed by the Bishop of Mannar, who represents the local community raised concerns over the possible harm to local industries and livelihoods due to the proposed Adani project.

President Dissanayake promised to revoke the deal and seek international tenders to develop wind power in Sri Lanka during the election campaign.

“Everyone interested in environmental integrity and financial transparency will celebrate the fact that President Dissanayake has delivered on his promise to defeat this conspiracy to defraud the people of Sri Lanka,” Biodiversity scientist Rohan Pethiyagoda told the DailyFT. Pethiyagoda has protested against the project last year.