LNP – Sri Lanka open for renegotiation with Adani on tariff rates

Despite Indian conglomerate Adani Group’s announcement that it withdrew from the US $ 442 million wind power project in Mannar, the Energy Ministry has requested the company to inform its stand in writing on the future of the project since Sri Lanka remains open for renegotiation of tariffs quoted originally, an official said.

The project involved building two wind power projects along with transmission lines.

The Sri Lankan government, led by President Anura Kumara Dissanayake objected to the project because of the earlier price of US $ 0.08 and asked for the rates to be trimmed.

In his maiden speech recently, President Dissanayake took an indirect swipe at the high price quoted by Adani.

According to an official from the Energy Ministry, the Cabinet approval has been taken for the appointment of a committee to renegotiate the price for furtherance with the project. The official said that the government’s stand remains the same.

The official said the Ministry wrote to the Adani Company last Monday to inform its position in writing within two weeks.

The project was signed under the interim President Ranil Wickremesinghe in May 2024.

Earlier, Adani Green said it was still committed to Sri Lanka and was open to future collaboration if the government in Colombo desired. The Adani Group is also involved in building a US $700 million terminal project at the country’s largest port in Colombo.

The US International Development Finance Corporation had initially pledged US $ 553m for Adani’s West Container Terminal in Colombo but later pulled out.

Adani Green had been under protracted discussions with the Ceylon Electricity Board (CEB) and various government departments for more than two years, in respect of establishing 484MW Renewable Energy Wind Farms at Mannar and Pooneryn along with its associated transmission system.