India’s Adani Green Energy and Sri Lankan government authorities are likely to face a legal dispute over the reimbursement of initial expenses incurred by the company before it withdrew from renewable energy projects in Sri Lanka.
Adani pulled out of the project after the new government, led by the National People’s Power (NPP), declined to proceed under the terms agreed upon by the previous administration. The NPP government sought to renegotiate the cost of power generation, disagreeing with the rates set by its predecessor.
The project, valued at $442 million, aimed to establish wind power plants in Mannar and Pooneryn, contributing at least 350 MW to Sri Lanka’s national grid by 2025.
In May, Adani sent a letter to Sri Lankan authorities requesting reimbursement for its initial investments in research and feasibility studies conducted in collaboration with the Sustainable Energy Authority (SEA).
The SEA is currently seeking legal advice on the reimbursement request. While the Authority insists it cannot repay expenses related to the energy permit, it is open to considering other reimbursements based on legal guidance.
According to an informed source, the matter could escalate into legal proceedings due to unresolved disagreements over the reimbursement claims.
