Sri Lanka Revokes Adani's $442 Million Wind Power Project Amid Court’s Trial And Allegations Of “Backdoor Entry”

Sri Lanka has revoked a 2024 power purchase agreement with Adani Green Energy for a proposed wind power plant in the Northern Province, amid corruption allegations, AFP reported on Friday (24 January). 

A senior Energy Ministry official clarified that while the agreement is revoked, the project itself has not been cancelled. “A committee has been appointed to review the entire project,” the official said quoted as saying by The Hindu.

The $442-million wind power project, which includes two wind power plants in Mannar and Pooneryn, has faced controversy since its approval by the Ranil Wickremesinghe administration in February 2023. 

The project became a focal point of criticism due to its alleged lack of transparency and environmental concerns.

In May 2024, the Cabinet approved purchasing power from Adani Green Energy at a rate of $0.0826 (8.26 cents) per kWh. 

However, this decision sparked opposition from various groups. Environmentalists expressed concerns over the disruption of a critical aviation corridor, economists deemed the rates excessive, and anti-corruption activists questioned the absence of a competitive tender process.

The political opposition accused the Adani Group of gaining a “backdoor entry” into Sri Lanka’s energy sector, leading to the project being challenged in Sri Lanka’s Supreme Court. 

In October 2024, President Anura Kumara Dissanayake’s administration informed the court that the agreement required a “comprehensive reevaluation” before proceeding.

A committee of experts has been appointed to examine the project’s adherence to Sri Lanka’s Electricity Act and environmental regulations. The case is set for a Supreme Court hearing in March 2025, with the project’s fate hinging on the review’s findings.