Sri Lanka annuls Adani power purchase deal over corruption allegations: Report

Sri Lankan President Anura Kumara Dissanayake launched an investigation into Adani’s local projects after its founder, Gautam Adani, was accused of bribery in the United States last year.

"The government has revoked the power purchase agreement, but the project is not cancelled. A committee has been appointed to review the entire project," an anonymous energy ministry official told AFP.

In May 2024, the previous Sri Lankan government had agreed to procure electricity at $0.0826 per kilowatt from an Adani wind power plant that is yet to be built in the northwest.

However, the current administration chose to scrap the agreement earlier this month while deciding to reassess the project.

A senior energy ministry official confirmed that the government has set up a committee to "re-evaluate" the wind power initiative, although it has not been terminated.

Critics had opposed the deal, arguing that smaller renewable energy projects offered more competitive prices.

Adani Group had proposed constructing two wind farms in Sri Lanka's Mannar and Pooneryn regions, with a combined capacity of 484 MW and an investment of $740 million.

Originally set for completion by mid-2026, the project has faced multiple hurdles, including opposition from environmental groups and a Supreme Court case over ecological concerns.

President Dissanayake, who assumed office in September, has vowed to combat corruption and recover misappropriated national assets.

While Adani Group denies the bribery allegations, the conglomerate has faced various fraud accusations.

Despite being Sri Lanka’s first foreign investor following its 2022 financial crisis, Adani’s $442 million wind power project has faced delays due to ongoing legal disputes.