India’s Adani Green Energy is seeking reimbursement of several million U.S. dollars from the Sri Lankan government after pulling out of two major renewable energy projects, according to local media reports in Colombo.
The projects, intended to build wind power plants in Mannar and Pooneryn in Sri Lanka’s northern province, were valued at $442 million and expected to contribute at least 350 megawatts to the national grid by 2025. However, the initiative hit a roadblock when Sri Lanka’s newly elected National People’s Power (NPP) government demanded a reduction in the cost of power agreed upon under the previous administration.
Citing disagreements over pricing terms, Adani Green Energy officially informed the government of its decision to withdraw from the projects. In a letter sent to authorities in May, the company requested reimbursement for its initial expenses related to project research and feasibility studies conducted alongside the Sustainable Energy Authority (SEA).
While the exact reimbursement amount is yet to be determined, it is expected to include at least US$3 million already paid to the SEA. A senior official from the Ministry of Power and Energy confirmed that the government has not yet reached a decision and will seek legal advice before proceeding.
“If there is any payment, it will be done only through Cabinet approval,” the official stated.
