The Sri Lankan government has reiterated that it will only reconsider the Adani Green Energy wind power projects if the Indian conglomerate agrees to lower the previously agreed pricing, Cabinet Spokesperson Nalinda Jayatissa confirmed this week.
Adani Green Energy, a subsidiary of India’s Adani Group, had been set to invest $442 million to develop two wind power stations in Mannar and Pooneryn in Sri Lanka’s Northern Province. However, last month, the group announced its withdrawal from the projects after Sri Lankan president Anura Kumara Dissanayake’s administration demanded a reduction in the electricity tariff from 8.26 US cents per kilowatt-hour (kWh) to 6 US cents per kWh—a move Adani has so far refused to accept.
Despite Adani’s earlier withdrawal, a source with knowledge of the discussions confirmed that the company has now informed the Sri Lankan government that it is still open to implementing the project under the original terms.
“We have written to the Sri Lanka government that we are willing to work on the same terms as earlier,” a source told Economy Next.
This stance comes amid ongoing legal cases against Adani’s wind power project in Sri Lanka, which had previously been challenged in court by environmental activists over concerns regarding environmental impact and excessive tariffs.
Speaking at a press briefing, Jayatissa maintained that the government’s position remains unchanged. “We are open to investment, but the government has an opinion on the price in the proposed wind power project,” he claimed. “It is high.”
“If they come up with a price revision, we can discuss. If they are not ready for price revision, then they can take a decision to give up the project,” he added.
The power purchase agreement (PPA) for Adani’s wind power plants was originally signed under former interim president Ranil Wickremesinghe in May 2024, but faced criticism from activists and energy experts.
During his election campaign, Dissanayake pledged to review all major energy deals, including Adani’s wind farms. A Supreme Court case challenging the environmental impact of the Mannar wind farm and opposition from local communities also played a role in delaying the project’s progress.
The company had spent about $5mn on “pre-development activities” for the two wind farms. “With the exception of Mannar Environmental approval & an associated Supreme Court case, we have procured almost all clearances,” Adani said.
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