The Government has rejected claims that it canceled the $1 billion wind energy project in Mannar with India’s Adani Green Energy, clarifying that the company withdrew after failing to agree on a reduced electricity tariff.
At the weekly post-Cabinet meeting briefing, Cabinet Spokesman and Minister Dr. Nalinda Jayatissa confirmed the Government’s ongoing commitment to wind energy development in Mannar and emphasized that alternative investors are actively being sought.
“The Government has been focused on lowering electricity rates since we assumed office. Our aim was to negotiate a reduction in the unit rate from $8.26 cents per kWh — not to cancel the project. We even attempted to match the rates Adani offers in India. Unfortunately, we couldn’t reach an agreement, leading to Adani’s decision to withdraw,” Dr. Jayatissa explained.
When asked whether the Government would re-engage with Adani for further talks, Dr. Jayatissa refrained from commenting, stating that any future discussions would depend on Adani’s willingness to lower its proposed tariff.
Last week, Adani Green Energy announced its decision to withdraw from the 484 MW wind energy project, raising concerns about the country’s investment climate.
However, Dr. Jayatissa dismissed accusations that the administration was driving foreign investors away, revealing that another company had already agreed to offer electricity at a rate lower than Adani’s proposal.
“All we wanted was the best possible prices for our people,” he said, noting that the matter had been discussed with Indian officials during the President’s recent visit to India.
He strongly rejected the idea that foreign investors were leaving Sri Lanka following the Government’s assumption of power. “Even with one investor leaving, many others have shown interest in renewable energy projects. There are still plenty of opportunities for investors to come to Sri Lanka and invest at a fair price,” he added.
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