The Sri Lankan government has initiated a review of the pricing proposed by India’s Adani Group for the 484 MW wind power project in Mannar and Poonaring in the Northern Province, Cabinet Spokesperson Minister Nalinda Jayatissa confirmed today.
Addressing concerns over the project’s status, Minister Jayatissa stated that the contract has not been cancelled but is undergoing a price revision to ensure maximum benefit for Sri Lanka. The government is evaluating Adani Group’s proposed pricing and is also considering sending a delegation to India for further discussions.
The review comes amid reports that Adani Group might withdraw from the project, which was initially approved in June last year under the Ranil Wickremesinghe administration. A senior government official noted that Adani Green Energy SL Limited had proposed a tariff of 8.26 US cents per kilowatt hour, while local bidders had offered significantly lower prices at 4.88 US cents per kilowatt hour.
Given this discrepancy, the Sri Lankan Cabinet has appointed a committee to reassess the agreement and make recommendations. The review is being conducted in accordance with standard procedures required for such contractual revisions or potential cancellations.
Adani Green Energy’s $442 million wind power project was approved by the Board of Investment (BOI) of Sri Lanka in February 2023. The development of wind farms in Mannar and Poonaring was aimed at strengthening Sri Lanka’s renewable energy sector, but the project has since faced legal and procedural challenges.
As discussions continue, the government remains focused on securing fair pricing and ensuring that Sri Lanka’s renewable energy initiatives align with national interests.
