In a significant development, Sri Lanka’s government, under the leadership of President Anura Kumara Dissanayake, announced its intention to revisit the approval of the Adani Group’s ambitious wind power project. This decision came to light during a Supreme Court session on October 14, where the attorney general informed a five-judge bench about the Cabinet’s decision to review the project, originally sanctioned by the previous administration.
Background on the Project
In 2022, the Adani Group proposed a substantial investment of $440 million to develop 484 megawatts (MW) of wind power in the northeastern regions of Mannar and Pooneryn. However, this project has been met with controversy. Petitioners in the Supreme Court have raised concerns over a lack of transparency in the bidding process, claiming that the project was awarded to Adani Green Energy without proper scrutiny. They also argue that the agreed tariff of USD 0.0826 per kilowatt-hour (kWh) is detrimental to Sri Lanka and should be reduced significantly to USD 0.005 per kWh.
Political Context
The political backdrop to this reassessment is critical. During his campaign for the presidency, Dissanayake of the National People’s Power (NPP) alliance vowed to cancel the project if he won the election. His government’s current review reflects a broader commitment to reevaluate major contracts that may not align with the nation’s interests.
Other Adani Ventures in Sri Lanka
The Adani Group is not new to Sri Lanka. In 2021, it secured a contract to develop and operate the West Container Terminal (WCT) at Colombo Port, a vital hub for maritime trade. This joint venture with Sri Lanka’s John Keells Holdings and the Sri Lanka Ports Authority (SLPA) involves a $700 million investment aimed at enhancing the port’s capacity. This project has been viewed as a strategic counterbalance to China’s growing influence in the region, particularly after Beijing developed the nearby Colombo International Container Terminal (CICT) and the Hambantota Port.
Next Steps
The final decision regarding the wind power project will be communicated once the new Cabinet is sworn in following parliamentary elections set for November 14. As Sri Lanka navigates this crucial phase, the outcomes of these developments will be closely monitored by both local and international stakeholders.
