Mon Feb 17 12:33:39 UTC 2025: ## Sri Lanka Rejects Adani Green Energy Project Over “Excessive Tariff”
**Colombo/Muscat, February 17, 2025** – Sri Lanka has officially rejected Adani Green Energy’s controversial renewable energy project, citing an “excessive tariff” of $0.0826 per kilowatt-hour (kWh). The decision, announced by President Anura Kumara Dissanayake during his maiden Budget speech, follows Adani Green’s withdrawal from the 484 MW wind power project in Mannar and Pooneryn.
President Dissanayake stated that awarding energy projects at such a high tariff “cannot be justified,” especially considering a recently awarded 50MW wind power project to a local company at a significantly lower rate of $0.0465 per kWh. He emphasized Sri Lanka’s commitment to welcoming energy investments based on competitive tariffs, without favoring any specific company or country.
Sri Lankan Foreign Minister Vijitha Herath confirmed that Adani Green’s withdrawal was due to the high tariff negotiated under the previous government, characterizing the decision as a surprise. He clarified that the change in government was not the reason for the project’s abandonment.
The rejection comes amid ongoing legal challenges to the project, with at least five petitions concerning human rights, land rights, and environmental concerns pending before Sri Lankan courts. The *Daily Financial Times* lauded Adani’s exit as a victory for transparency.
Adani Ports and SEZ CEO Ashwani Gupta, speaking at the 8th Indian Ocean Conference in Muscat, defended the company’s practices, stating that they consult with all stakeholders. However, the project has faced criticism since its inception due to a lack of competitive bidding and significant local opposition.
The Adani group has recently encountered similar setbacks in other countries, including Bangladesh, Kenya, and the United States, often following changes in government. These challenges include tariff reviews, legal indictments, and contract cancellations.
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