Adani Group Faces Setback in Sri Lanka

The Adani Group has encountered a major setback in Sri Lanka as the government canceled a power purchase agreement previously signed with the company. In May last year, the Sri Lankan government under the previous administration had entered into an agreement with the Adani Group to purchase electricity at a rate of Rs 7.13 per kilowatt. As part of this deal, Adani planned to build 484 MW wind power plants in Mannar and Pooneryn to supply electricity.

However, concerns were raised that several companies were offering electricity at significantly lower rates than the price agreed upon by Adani. Additionally, allegations emerged last November 19 in the United States, accusing Adani of paying bribes to secure power contracts in Sri Lanka.

Amid these allegations, the new Sri Lankan government, led by President Anura Kumara Dissanayake, has decided to cancel the power purchase agreement with Adani. However, the government clarified that the wind power plant construction project itself has not been canceled. A committee has been appointed by the Cabinet to review the entire project, a government official stated.

Responding to the developments, Adani Group clarified that the construction of the wind power project remains intact and that the new government has only decided to review the approved tariff for the power purchase agreement.