By unusuma.lk on (LK time)
The Adani Group remains eager to bring Adani Green Energy’s $1-billion renewable power initiative in Sri Lanka back into discussion, sources revealed. In February, the firm announced its decision to pull out of the project, yet it has kept a presence, as both parties are expected to agree on the pricing to be applied, sources familiar with the situation confirmed.
Negotiations regarding the pricing continue, and a mutually acceptable rate is expected to be determined soon, sources noted. A proposed 7 cents per kWh is under discussion, while Sri Lanka had initially requested 5-6 cents per kWh compared to the previously suggested 8.26 cents under the 20-year supply agreement.
The project could potentially commence by June, sources indicated, provided all formalities and necessary documentation are finalised in time. The Indian government is also reportedly supportive of the project proceeding in Sri Lanka, viewing it as a strategic economic opportunity, the sources added.
The Adani Group did not respond to an email requesting comments on the project.
Discussions between Adani Green and Sri Lankan authorities, including Ceylon Electricity Board representatives, had stalled over pricing concerns for the 484-MW renewable wind farms in Mannar and Pooneryn. The initiative also involved transmission infrastructure and additional 220 kv and 400 kv grid network expansion.
Adani Green has already invested $5 million in pre-development work for the project. Sources highlighted that while the company had officially notified Sri Lanka’s Board of Investment about its withdrawal, no legal measures had been taken to completely abandon it. The company also left room for future engagements, stating its willingness to explore new opportunities in Sri Lanka.
The project has secured most regulatory approvals, except for environmental clearance in Mannar.
Originally launched under the previous Sri Lankan administration, the initiative faced delays when the new President, Anura Kumara Dissanayake, established a committee to reassess the project and negotiate a lower tariff than initially agreed.
