'False': Adani Group denies reports of Sri Lanka power deal cancellation

Adani Group has denied reports of the cancellation of its Sri Lanka power deal, calling the reports '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,” an Adani spokesperson said in a statement.

“Adani remains committed to investing $1 billion in Sri Lanka’s green energy sector, driving renewable energy and economic growth,” the spokesperson added.

Earlier, the Sri Lankan media reported that the President Dissanayake-led cabinet had revoked a decision made in May 2024 to award a wind power project contract to Adani Green Energy.

The wind power project was approved by the previous cabinet led by Dissanayake's predecessor, Ranil Wickremesinghe.

However, the company spokesperson said: “The Sri Lankan Cabinet’s decision of 2 Jan 2025 to reevaluate 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.”

Reportedly, there were concerns raised in the country regarding the project costs speculated to be higher than local bidders to the project.

Mannar, a critical habitat for migratory birds, was expected to have faced potential ecological risks due to this project, further fuelling opposition from the local community against the project.

Sri Lanka has been prioritising renewable energy projects to reduce dependence on imported fuel following power blackouts and fuel shortages during the 2022 economic crisis.

The accusations by the US authorities against alleged bribery by the Adani conglomerate raised further apprehensions. Already, the group faced a major setback when Kenya cancelled over $2.5 billion in contracts related to airport development and power transmission.

In Sri Lanka, the group remains involved in the $700 million Colombo port terminal project, despite the government’s re-evaluation of other local projects.