Adani Reoffers Energy Deal In Sri Lanka, Dissanayake Firms On Price Revision

It has only been a month since the Adani group withdrew its renewable energy project in Sri Lanka, and now the Adani Green Energy has said it is willing to work on the same terms as earlier, a report said.

Sri Lanka, however, has appeared firm on its condition. It stays with the position that the deal, including the construction of two wind farms in Mannar and Pooneryn to generate 484 megawatts of power, will be allowed if the Adani group agrees to a price revision, the report said. 

The Sri Lankan government wanted to renegotiate the power purchase agreement with an estimated cost of total of $1 billion. It wanted to reduce costs, following allegations of bribery against Adani group’s founder Gautam Adani in November last year.

President Anura Kumara Dissanayake, who rose to power in September 2024, also pledged to renegotiate the deal while campaigning for the national elections. 

The Adani group withdrew from the deal after the Sri Lankan government set up a review committee for the deals with the Adani group in January this year. 

Adani Green has now said to the Sri Lankan government that it is willing to implement the project at the previously agreed rates. 

The Dissanayake government had asked the Adani group to reduce the per kilowatt-hour (KWH) rate to $6 cents from $8.26, which was decided by the previous government. The previous rate sparked controversy and lawsuits from activists about the environmental impact and high tariff.

The Adani group was to invest $442 million to build the two wind farms.