Fri Feb 07 03:00:00 UTC 2025: ## Sri Lanka to Renegotiate Adani Wind Power Deal, Seeking Lower Tariffs
**Colombo, Sri Lanka –** The Sri Lankan government has announced it will renegotiate the power purchase agreement with Adani Green Energy Limited for a wind power project in the country’s northern province. While the project itself is not cancelled, as initially reported, the government will seek a significantly lower tariff than the previously agreed-upon 8.26 cents per kilowatt-hour (kWh).
Cabinet Spokesman Nalinda Jayatissa stated the government aims for a rate below six cents per kWh. This decision follows President Anura Kumara Dissanayake’s pre-election pledge to review the project, which has been embroiled in controversy since its approval under the previous administration. The government previously told the Supreme Court it would reconsider the project’s approval.
The $442 million project, involving two wind power plants in Mannar and Pooneryn, is expected to add 350 MW to Sri Lanka’s national grid. However, concerns have been raised about its environmental impact and the lack of a competitive bidding process during its initial approval. Opposition parties have criticized the deal, alleging that it bypassed due process and favored the Adani Group without fair tendering.
The project’s history is marked by controversy, from its secretive initial stages to the resignation of the Ceylon Electricity Board (CEB) chairman who alleged pressure from Indian Prime Minister Narendra Modi to approve the deal. Despite accusations of corruption against the Adani Group, the Sri Lankan government previously defended the project as a “government-to-government” deal.
The renegotiation comes amidst ongoing legal challenges to the project based on environmental concerns and lack of transparency, with the next hearing scheduled for March. The outcome of the renegotiation remains uncertain, but the move signals a significant shift in the Sri Lankan government’s approach to this major foreign investment.
First Piper 