Adani Group has confirmed that its power purchase agreement (PPA) with the Sri Lankan government for wind power projects remains intact, countering a report by AFP that suggested its cancellation. According to Reuters, despite recent reviews by Sri Lankan authorities, the agreement involving Adani’s 484MW wind power projects in Mannar and Pooneryn is unaffected.
The Sri Lankan government has been reviewing Adani’s local projects following allegations from US authorities in November 2024, claiming that Gautam Adani and other executives were involved in a bribery scheme related to Indian power supply contracts. Adani denied these allegations, and the company emphasised that the PPA was not revoked.
An Adani spokesperson stated: “Reports that Adani’s wind power projects in Sri Lanka have been cancelled are false and misleading.” They described the recent tariff review by Sri Lanka’s cabinet as a standard procedure with the new government. While the Power and Energy Ministry in Sri Lanka has not commented, two sources confirmed that the power purchase deal remains under review.
Under the agreement, Adani Green Energy is set to invest $442 million in two wind power stations in Sri Lanka’s northern province, with a tariff of 8.26 cents per kilowatt-hour.
Sri Lanka, grappling with power blackouts and fuel shortages, aims to expand green power generation to mitigate rising fuel import costs.
The US allegations have led some partners and investors to reassess their involvement with Adani. This includes at least one Indian state reconsidering its power agreement and TotalEnergies suspending further investments. Kenya has also cancelled over $2.5 billion in deals with Adani, including airport and power transmission projects, following the US indictment.