India’s Adani Group has firmly rejected reports suggesting the cancellation of its $440 million power purchase agreement with Sri Lanka. A spokesperson for the conglomerate labeled the reports as “false and misleading,” emphasizing that its 484 MW wind power projects in the northern Sri Lankan regions of Mannar and Pooneryn are still on track.
The statement came after widespread media coverage, including a report by AFP published in The Economic Times on Friday, which claimed that the new Sri Lankan government had revoked the deal. The report alleged that the revocation followed a probe into U.S. bribery allegations involving Adani Group executives, including its billionaire founder, Gautam Adani. These allegations stemmed from an indictment by U.S. authorities in November 2024, accusing Adani executives of paying bribes to secure Indian power supply contracts—a claim that the Group has strongly denied.
A spokesperson for the Adani Group clarified, “The Sri Lankan Cabinet’s decision on January 2, 2025, to reassess the tariff approved in May 2024 is part of a routine review process, particularly with a new government in place. This review ensures that the terms of the deal align with the current energy policies and priorities of the country.”
Despite these reassurances, reports indicate that while Sri Lanka’s President, Anura Kumara Dissanayake, has instructed a review of the deal, the project itself has not been canceled. A committee has been appointed to evaluate the terms of the agreement, which is intended to advance Sri Lanka’s green energy agenda. The energy ministry has yet to provide an official comment on the matter, but sources within the ministry revealed to Reuters that the power purchase agreement is still under review.
Adani Group remains committed to its investment in Sri Lanka’s renewable energy sector, stating that it plans to invest a total of $1 billion in green energy initiatives, with a focus on driving both energy sustainability and economic growth.
The deal, signed in May 2024, involved Adani Green Energy building two wind power stations with a total capacity of 484 megawatts, at an investment of $442 million. Under the agreement, Adani would receive 8.26 cents per kilowatt-hour (kWh) for the energy produced. Given Sri Lanka’s recent struggles with power shortages and economic challenges, the government has been keen on accelerating green energy generation as part of its strategy to reduce dependence on costly fuel imports.
Beyond Sri Lanka, the Adani Group has faced increasing scrutiny following the U.S. bribery investigation. This has led to the cancellation of over $2.5 billion worth of deals in Kenya, which included projects such as an airport development and power transmission lines. In India, some state governments have also begun reviewing their agreements with the group, while TotalEnergies has suspended further investments in Adani.
In Sri Lanka, however, despite the ongoing controversy, the Adani Group’s projects remain a central part of the country’s plans to boost renewable energy capacity. In addition to the wind power venture, Adani is also involved in a $700 million terminal project at the Port of Colombo, further solidifying its stake in Sri Lanka’s infrastructure.
