Sri Lanka’s newly elected government, led by Anura Kumara Dissanayake, informed the country's Supreme Court on Monday that it will reconsider the approval previously granted to India's Adani Group for a major wind power project.
Ad reported by PTI, the Attorney General’s office, representing the government, announced that a decision to review the project was made during a Cabinet meeting on October 7. A final decision will be communicated once the new Cabinet is installed following the upcoming parliamentary elections on November 14.
President Dissanayake, who secured victory in the September 21 presidential election, had promised during his campaign to cancel the Adani project, citing concerns over national energy sovereignty. His National People’s Power (NPP) alliance argued that the deal could compromise Sri Lanka’s control over its energy sector and pledged to annul the agreement if elected.
The Adani Group had committed over $440 million to develop 484 megawatts of wind power in the northeastern regions of Mannar and Pooneryn under a 20-year agreement. However, the project has faced legal challenges in the Supreme Court, with petitioners raising issues about environmental risks, transparency in the bidding process, and concerns over the financial viability of the project.
Critics have argued that the agreed tariff of $0.0826 per kWh would result in financial losses for Sri Lanka, advocating for a reduced rate of $0.005 per kWh.
This decision marks a significant point in Sri Lanka’s energy policy, with the new government indicating its intention to reassess major deals made under the previous administration.