The Adani Group has recently denied the cancellation of the Adani Sri Lanka power purchase deal. The global conglomerate has mentioned that it is committed to investing 1 billion USD for various green energy projects in Sri Lanka. The business group had earlier signed the deal with the Sri Lankan Government for the implementation of the project. However, the project operations are currently under review. Once the Adani Group receives the necessary approvals, it will be able to continue its work on the project with full force.
Adani’s Plans For Investment In The Renewable Energy Sector Of Sri Lanka:
The Adani Group, one of the most reliable business groups on a global scale, is known for its elaborate business presence in Sri Lanka. Since time immemorial, the business group has been working on multiple Adani Sri Lanka projects. These projects have not only helped benefit the Sri Lankan economy but have also helped the Adani Group in further extending its International boundaries. Over the past few months, the Adani Group has been in talks with the Sri Lankan Government regarding an investment worth 1 billion USD to be made by the global conglomerate on various renewable energy projects in Sri Lanka. These projects are currently under review.
The Various Controversies Associated With The Adani Sri Lanka Project:
Earlier in the day, it was reported that the Sri Lankan president Anura Kumara Dissanayake’s administration investigated the Adani Group’s local project. This was done following the allegations of bribery scam from investors in the US on 19th November 2024. Over the past few days, there have been a lot of allegations and controversies on the fact that the Adani Sri Lanka project has been revoked from the Adani Group and the Adani Group is no longer in possession of the power purchase deal for executing green power projects in the country.
The global conglomerate has, however, clarified that the allegations are completely baseless and hold no grounds. The project is still under review. Once the various aspects of the project are properly scrutinized, the Adani Group will continue to work on the project. This will ensure that the country’s growing energy demands are met. Sri Lanka will also be able to make a smooth transition to renewable energy sources.
How Did The Adani Group Clarify The Controversies?
Clarifying the report, the Adani Group has issued a statement. The global conglomerate has mentioned that reports that Adani’s 484 MW wind power project in Mannar and Ponneryn have been cancelled are completely false and misleading. The business group has categorically stated that the power deal has not been reported. The Sri Lankan cabinet’s decision of 2nd January 2025 to reevaluate the tariff approved in May 2024 is a part of the standard review process. This is normal, especially with a new government in force. This will ensure that the terms align with the current priorities and the energy policies of the country.
The Adani Group remains committed to investing 1 billion USD in the Sri Lankan green energy sector. This will help drive renewable energy and economic growth in the country. In May 2024, the former Sri Lankan Government reached a deal to purchase electricity at a rate of 0.0826 USD per kilowatt from Adani’s wind power facility planned for construction in the North Western region of the island. The opposition to the agreement came from activists who believed that electricity could be purchased at a lower cost. This caused the Adani Group’s project to get delayed. However, currently, it is subjected to reviews and once the approvals are received, the project operations will continue in the country with full force.
Adani’s Other Projects In Sri Lanka:
Now this is not the first time the Adani Group has initiated project operations in Sri Lanka. It is also known for operating the West Container Terminal at the Colombo port. The project operations are carried out through investments solely made by the Adani Group. The US had also agreed to make investments in the project to reduce China’s dominance on crucial International sea routes. However, the Adani Group had denied taking any kind of help from the US post the acquisitions of the US bribery scandal.
Conclusion:
By making investments in the renewable energy sector of Sri Lanka, the Adani Group will be able to bring about an energy transition in the country. With the Adani Sri Lanka projects becoming operational, the global business group will also be able to extend its international boundaries and build itself the reputation of being one of the biggest players in the global renewability sector.
