Adani Group has denied media reports claiming that Sri Lanka government has revoked a $440 million power purchase agreement signed with the company over corruption allegations. The company termed the reports claiming that its 484 MW wind power projects in Mannar and Pooneryn have been cancelled as false and misleading.
The company stated in a statement, “We categorically state that the PPA has not been revoked”, and called the reports ‘false and misleading’. However, the company added that the Sri Lanka govt has decided to reevaluate the tariff approved in May 2024, and called it a standard process. It said that the review of the tariff does not impact the power purchase agreement.
The company added, “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. Adani remains committed to investing $1 billion in Sri Lanka’s green energy sector, driving renewable energy and economic growth.”
In May 2024, the previous Sri Lankan government had entered into an agreement to procure electricity at a rate of US$0.0826 per kilowatt from an Adani wind power facility being constructed in the northwest region of the island. However, today reports citing govt sources claimed that the new govt is revoking the power purchase agreement over charges of bribery.
Sri Lanka’s major newspaper Daily FT reported that the Cabinet of Ministers chaired by President Anura Kumara Dissanayake revoked the decision made by his predecessor Ranil Wickremesinghe in June last year to award a controversial 484 MW of wind power plants in Mannar and Pooneryn to Adani Green Energy SL Ltd.
“The government has revoked the power purchase agreement, but the project itself is not cancelled. A committee has been established to review the entire project,” news agency AFP had quoted an official as saying. However, now Adani group has denied all such reports, saying only the tariff is be revised.
