Adani Group denies canceling Sri Lanka's $440 million power purchase agreement, calling it "false and misleading." Here's why.

Calling the accusations "false and misleading," the Adani Group has denied that its power deal with Sri Lanka has been canceled. On Friday, January 24, the ports-to-power conglomerate's spokeswoman said that rumors that Adani's 484 MW wind power projects in Mannar and Pooneryn had been canceled are untrue and deceptive.

"We firmly assert that there has been no cancellation of the project. As part of a routine review procedure, especially with a new government, the Sri Lankan Cabinet decided on January 2, 2025, to reevaluate the tariff established in May 2024 to make sure the terms fit their current energy plans and priorities. Adani is still dedicated to making a $1 billion investment in Sri Lanka's renewable energy industry.

The Cabinet, headed by President Anura Kumara Dissanayake, rescinded the decision to award a contract to Adani Green Energy SL Ltd. for the construction of wind power facilities at Mannar and Pooneryn, according to a report published earlier today in the Daily FT, Sri Lanka's top business newspaper. This decision pertaining to a 484 MW wind power project was taken in June of last year and approved by Ranil Wickremesinghe, Dissanayake's predecessor.

The incumbent president pledged during his campaign to revoke the agreement and call for international bids to generate wind power in Sri Lanka. In keeping with this pledge, the Cabinet on December 30 agreed to cancel the May 2024 cabinet decision that had authorized the Adani Green Energy project.

The project was given to the corporation in June 2024 by Ranil Wickremesinghe, Dissanayake's predecessor.When the local bidders offered 4.88 cents per kWh, concerns were raised concerning the arbitrary pricing of US $ 8.26.