Sri Lanka Reevaluates Adani Group Wind Power Pricing Agreement

The Sri Lankan government has revoked the pricing agreement for Adani Group's wind power projects, not the projects themselves. A committee will review the agreement terms, including pricing. Criticisms have arisen regarding higher agreed prices compared to local offers, and environmental concerns also loom.

The Sri Lankan government announced the revocation of the pricing agreement for the Adani Group's wind power projects on Saturday. However, the projects in Mannar and Pooneryn districts themselves have not been canceled. An appointed committee has begun reviewing the projects.

Government spokesperson Nalinda Jayathissa stated that the previous pricing agreement, reached in 2023 under former Prime Minister Ranil Wickremesinghe's administration, was unfavorable. The deal set power purchase prices higher than those offered by local competitors, prompting rejection of the initial terms.

The appointed committee will reevaluate the projects and make necessary modifications. Additionally, five court cases, mostly filed by environmental groups, challenge the agreement, citing threats to local biodiversity and migratory birds.

(With inputs from agencies.)