India’s Adani “respectfully” withdraws from Sri Lanka wind power deal
- CNL Reporter
- February 14, 2025
- Investment
- India’s Adani “respectfully” withdraws from Sri Lanka wind power deal
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India’s Adani Group has decided to withdraw its wind power deals with Sri Lanka, the company said in a letter to the island nation’s Board of Investment (BOI), after Colombo’s recently elected government was preparing to renegotiate the project for a lower price.
Sri Lanka’s new government led by President Anura Kumara Disanayake last month said it will start discussion with Adani Group over a new power purchase agreement and expected the selling price to the state-run Ceylon Electricity Board (CEB) be below 6 US cents per kilowatt-hour from the earlier 8.26 US cents.
The government representatives had been planning to visit India to discuss the project.Under the signed power purchase agreement, Adani Green Energy was to invest $442 million to build two wind power stations in Sri Lanka’s Northern Province.
“Our executives recently had discussions with CEB officials as also with (Power and Energy) Ministry officials at Colombo,” the Adani Green Energy Limited said in a letter to Sri Lanka’s BOI chairman.“It was learnt that another Cabinet appointed negotiations committee (CANC) and Project Committee (PC) would be constituted to renegotiate the project proposal.
