Colombo, Sri Lanka – A government audit report has revealed that the Sri Lanka Sustainable Energy Authority (SLSEA) spent Rs. 261.7 million on the initial development work for the 500 MW renewable energy project in Mannar and Pooneryn, awarded to India’s Adani Group, despite the project not having commenced.
According to the National Audit Office’s 2023 report, SLSEA had formally requested the project developer to reimburse the amount in a letter dated November 8, 2022. However, subsequent financial statements indicate that the recoverable amount was reduced to Rs. 112.5 million, raising questions over the handling of public funds. The audit noted that no formal agreements or documents explaining this reduction were submitted for review, creating concerns about the transparency of financial transactions related to the project.
The Cabinet of Ministers had approved the awarding of the project to Adani on March 15, 2022. However, with no visible progress on the power plant’s construction, concerns have been raised regarding the accountability and financial management of the Sustainable Energy Authority. The audit further recommended that SLSEA provide the missing agreements and financial details without delay.
The revelation adds to the growing scrutiny over Adani’s energy investments in Sri Lanka, particularly in the wake of the company’s withdrawal from other renewable energy projects in the country. The findings also raise questions about Sri Lanka’s financial oversight in awarding large-scale infrastructure projects to foreign investors, particularly when significant amounts have been spent with little to no progress on the ground.
