Adani Group has responded to the Sri Lankan government’s letter within two weeks, reaffirming its intent to exit the renewable energy project while remaining open to discussions.
A key issue in negotiations has been the tariff, with Sri Lanka seeking a rate of around 6 cents per unit, whereas Adani’s offer was approximately 8 cents per unit.
The Sri Lankan Ministry of Energy is awaiting court decisions and Attorney General clearance before proceeding with negotiations.
Minister of Power and Energy Kumara Jayakodi recently stated that if Adani formally withdraws, the project will be awarded to another company.
Meanwhile, the government has informally reached out to other investors and is considering whether to proceed with another government-to-government deal or open a competitive bidding process.
Sri Lanka is signaling a shift toward competitive tenders for future renewable energy projects, including rooftop solar. A newly constituted Cabinet committee will address tariff-related concerns.
Adani Green’s initial letter to Sri Lanka’s Board of Investment in February first raised uncertainty over the project’s future. A subsequent letter to the Energy Ministry reiterated the group’s ongoing discussions over the past two years regarding the 484 MW wind farm project in Mannar and Pooneryn.
Despite securing most approvals and spending around $5 million on pre-development activities, unresolved issues, including environmental approvals and legal proceedings, continue to delay progress.
