ECONOMYNEXT – India’s Adani Green Energy has expressed its willingness to work with Sri Lanka on proposed renewable energy projects on the same terms decided earlier, a source said.
But Cabinet Spokesman Nalida Jayatissa said a discussion on the deal is possible only after a price revision.
Adani Group last month said it had decided to withdraw its wind power deals with Sri Lanka, after Colombo’s recently elected government demanded to lower the price.
The new government led by President Anura Kumara Dissanayake had demanded Adani to reduce per kilowatt-hour (KWH) to 6 US$ cents from 8.26 US$ cents, decided under the previous government.
“This is the same as our earlier communication,” said a source, who is privy to the latest correspondence between the Sri Lanka government and Adani company.
“We have written to the Sri Lanka government that we are willing to work on the same terms as earlier.”
The source said the company has responded to the Sri Lanka government via a letter on its stance.
“Our position is same as before. We are available to implement the project at the earlier agreed tariffs.”
Adani Green Energy was to invest $442 million to build two wind power stations in Sri Lanka’s Northern Province after protracted discussions to establish the 484 MW renewable energy wind farms at Mannar and Pooneryn, along with its associated Transmission system.
The government has revoked Adani project proposal’s earlier tariff. Sri Lanka’s Cabinet last year approved a 8.26 cents per unit tariff for the 484MW project, triggering a controversy over the price and court litigation by activists. Adani’s projects have also run into controversy after activists went to courts over possible impact on the environment and higher tariff.
Cabinet Spokesman Nalinda Jayatissa also said there was no change in the government’s stance on Adani deal.
“The government’s stance on Adani’s project has not changed yet,” he said.
“We are open for investment. If Adani brings suitable investments for us, we are ready to discuss. But the government has an opinion on the (unit) price in the proposed wind power project. It is high.”
“Our request is that the price revision should happen. If they come up with price revision, we can discuss. If they are not ready for price revision, then they can take a decision to give up the project.”
“It does not mean that all the investors coming to Sri Lanka are leaving. Whoever the investor, if the burden can’t be borne by us and if the government has to pass that burden to the people, then the government will take a decision with regard to this.”
He said President Dissanayake clearly told this when he went to India.
Adani’s announcement of withdrawal came after that.
“If they come up with price revision, we are ready to discuss. We don’t depend on one company or one country. We will discuss and decide everything depending on the benefits to the public. We don’t have any other interests,” Jayatissa, also the Minister of Health and Media, said.
Sri Lanka court has yet to decide on the legal cases. (Colombo/March 11/2025)
Continue Reading
