Thu Feb 20 20:36:22 UTC 2025: ## Sri Lanka Won’t Renegotiate with Adani Green, but Remains Open to Future Collaboration

**Colombo, Sri Lanka –** Sri Lanka will not renegotiate its contentious renewable energy project with Adani Green Energy after the Indian company withdrew its $442 million investment, a top Sri Lankan official confirmed Thursday. The withdrawal follows the Sri Lankan government’s decision to lower the power purchase tariff, deemed too high by President Anura Kumara Dissanayake.

K.T.M. Udayanga Hemapala, Secretary to the Ministry of Energy, stated that while Sri Lanka welcomes foreign investment, it will not lobby any specific investor. He emphasized that Adani Green’s withdrawal was the company’s decision, and Sri Lanka is now addressing legal requirements. However, Hemapala added that the government would be open to future discussions if Adani Green were to resubmit a proposal with a reduced tariff.

Adani Green’s February 12th withdrawal letter followed weeks of tension after President Dissanayake’s cabinet revoked a power purchasing agreement signed by the previous administration, which stipulated a tariff of $0.0826 per kWh. This decision was in line with the government’s aim to lower electricity tariffs by 30% within five years. While Adani initially stated the tariff review was a “standard process,” the company ultimately withdrew its investment.

The Sri Lankan courts are currently considering legal challenges to the Adani project, focusing on concerns regarding the project’s governmental classification, the Environmental Impact Assessment, and the tariff.

Separately, Sri Lanka’s Cabinet approved a joint venture with India to establish solar power plants in Sampur, a project reminiscent of a previous initiative proposed during the Gotabaya Rajapaksa administration. This new project, a collaboration between the Ceylon Electricity Board and the National Thermal Power Corporation of India, will involve two plants with a combined capacity of 120 MW.

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