Adani Group Denies Cancellation of $442 Million Wind Power Projects in Sri Lanka
The Adani Group has strongly refuted reports claiming the cancellation of its 484 MW wind power projects in Sri Lanka’s Mannar and Pooneryn regions. These projects, valued at $442 million, are part of Adani’s $1 billion commitment to Sri Lanka's renewable energy sector.
In an official press release, a spokesperson for the Adani Group stated, "Reports that Adani’s 484 MW wind power projects in Mannar and Pooneryn have been canceled are false and misleading. We categorically state that the project has not been canceled."
The clarification follows the Sri Lankan Cabinet's decision on January 2, 2025, to review the tariff rates approved in May 2024 for the projects. According to the Adani Group, this is a standard procedure undertaken by a new government to ensure alignment with current priorities and energy policies.
Despite the ongoing review, Adani has emphasized its continued commitment to Sri Lanka’s renewable energy goals, reiterating its investment plans aimed at driving economic growth and sustainability in the country.
The denial also comes amid heightened scrutiny of Adani Group’s operations globally. U.S. authorities recently indicted Adani Group’s chairman Gautam Adani and other executives on allegations of bribery and corruption related to power supply contracts in India, which the conglomerate has firmly denied.
Reports by AFP and other sources suggested that the Sri Lankan government revoked the 20-year power purchase agreement (PPA) signed with Adani in May 2024, following these allegations. However, officials clarified that while the PPA is being re-evaluated, the wind power projects themselves have not been canceled. A committee has been appointed to review the terms of the agreement.
Sri Lanka, facing challenges such as energy shortages and reliance on imported fuel, views renewable energy projects like Adani’s as vital for its future energy security. As the government moves forward with its review, Adani continues to advocate for the projects’ importance in contributing to Sri Lanka’s green energy transition.
The situation remains under close observation, with further developments expected in the coming weeks.
Note:
In response, the Adani Group has refuted these claims, stating that reports of the project's cancellation are "false and misleading." The company clarified that the Sri Lankan Cabinet's decision to reevaluate the tariff approved in May 2024 is part of a standard review process, especially with the advent of a new government, to ensure alignment with current priorities and energy policies. Adani emphasized its continued commitment to investing $1 billion in Sri Lanka's green energy sector.
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