The Adani Group on Friday categorically denied reports claiming that Adani's 484 MW wind power projects in Mannar and Pooneryn in Sri Lanka have been cancelled.

Earlier in the day, a Sri Lankan business newspaper had reported that the Cabinet led by President Anura Kumara Dissanayake had revoked the contract, which was awarded to Adani Green Energy SL by Dissanayake’s predecessor.

As per reports, the President had vowed to cancel the contract and bring the international bidders to boost Sri Lanka’s wind power production.

Terming such reports as "false and misleading", a company spokesperson said the Group remains committed to investing $1 billion in Sri Lanka's green energy sector.

The Sri Lankan Cabinet's decision of January 2 to reevaluate the tariff approved in May 2024 is "part of a standard review process, particularly with a new government, to ensure that the terms align with their current priorities and energy policies", according to the spokesperson.

Sri Lanka entered into a 20-year power purchase agreement with Adani Green Energy for two wind power stations developed by the company.

Adani Green Energy won the approval in February 2023 to invest $442 million and develop the 484 megawatts wind power plants in Mannar town and Pooneryn village, both located in the Northern province of Sri Lanka.

The company will be paid 8.26 cents per kilowatt-hour (kWh), according to the agreement.

Reportedly, the project also faced opposition from several environmental organizations, citing shortcomings in the Environmental Impact Assessment.

Not only that, the Bishop of Mannar, representing the local community, had voiced his concern over the proposed project’s effects on the community and their livelihood.

(with inputs from syndicated feed)

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