In May 2024, the government, under President Wickremesinghe, agreed to purchase electricity at a rate of 8.2 cents per kWh from Adani Green Energy as part of a 20-year agreement for the development of wind power projects, aimed at generating 484 MW of power. However, the new administration under Anura Kumara Dissanayake has decided to revoke the agreed tariff, though the broader deal remains intact. These committees will now review the terms and renegotiate the tariffs with the company.
The Adani Group has issued a statement refuting reports that the 484 MW wind power projects in Mannar and Pooneryn have been cancelled. The company clarified that a standard review process is currently underway with the Sri Lankan government and reaffirmed its commitment to investing $1 billion in Sri Lanka’s green energy sector.
A company spokesperson explained, “The Sri Lankan Cabinet’s decision of 2 January 2025 to re-evaluate 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. The project has not been cancelled.”
The development in Sri Lanka comes after Bangladesh’s highest court ordered the government to form a committee of experts to review the country’s power contact with Adani in November 2024.
Meanwhile, Adani Green Energy reported a strong performance in its Q3 financials, with consolidated net profits surging more than 85%, reaching ₹474 crore, compared to ₹256 crore in the same period last year.
ALSO READ | Adani Green shares slip amid report of Sri Lanka revoking power deal; company issues clarification
(Edited by : Ajay Vaishnav)
First Published: Jan 24, 2025 7:25 PM IST
