Despite the Adani Group’s announcement of withdrawing from the $442 million wind power project in Mannar, Sri Lanka’s Energy Ministry has requested the company to formally state its position in writing.
An official confirmed that the government remains open to renegotiating the originally quoted tariff rates.
The project, signed under interim President Ranil Wickremesinghe in May 2024, involved the construction of two wind power plants along with transmission lines.
However, the current Sri Lankan government, led by President Anura Kumara Dissanayake, objected to the previously quoted tariff of $0.08 per unit and demanded a lower rate.
In his maiden speech, President Dissanayake indirectly criticized the high price proposed by Adani.
An official from the Energy Ministry stated that the Cabinet has approved a committee to renegotiate the price while maintaining the government’s stance on seeking a tariff reduction.
The Ministry sent a letter to Adani last Monday, requesting a response within two weeks regarding the project’s future.
Adani Green had been in prolonged discussions with the Ceylon Electricity Board (CEB) and other government agencies for over two years regarding the establishment of 484MW renewable energy wind farms in Mannar and Pooneryn.
While Adani has expressed continued interest in Sri Lanka and potential future collaborations, it remains to be seen whether the renegotiation efforts will lead to a revival of the project.
The Adani Group is also engaged in a $700 million terminal project at Colombo’s largest port.
Initially, the U.S. International Development Finance Corporation pledged $553 million for Adani’s West Container Terminal in Colombo but later withdrew its support.
