Sri Lanka revokes power purchasing pricing deal with Adani, appoints committee to review

The move comes after criticism of the 20-year power purchase agreement signed by the previous administration in May 2024, which set a tariff of USD 0.826 per unit for Adani’s wind plants. Local bidders reportedly offered lower unit prices, prompting the new government to revoke the pricing agreement and reexamine the project’s terms.

“We are not agreeable to the prices proposed,” Jayathissa said. “As a result, the pricing agreement was revoked, and the committee was tasked with revising the projects, including its pricing structure.”

The projects have also faced legal challenges, with five court cases, mostly filed by environmental groups, pending against the agreement. Petitioners argue the projects pose risks to biodiversity and migratory birds in the area.

The Adani Group denied reports of cancellation in a media statement issued on Friday, calling them “false and misleading.”

“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 statement read.

Adani emphasised that the Sri Lankan Cabinet’s decision on January 2 to reevaluate the May 2024 tariff 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 Indian conglomerate reiterated its commitment to Sri Lanka, stating, “Adani remains committed to investing USD 1 billion in Sri Lanka’s green energy sector, driving renewable energy and economic growth.”