Sri Lanka asks Adani to lower tariff in $442 million wind power projects amid scrutiny

The review of Adani’s projects follows allegations made by U.S. authorities in November, accusing Gautam Adani and other executives of participating in a bribery scheme to secure Indian power supply contracts.

Adani has categorically denied these accusations.

“The Sri Lankan government aims to secure a lower tariff, and negotiations with Adani are already underway,” Jayatissa was quoted as saying by Reuters.

The government is targeting a reduced rate of $0.06 per kilowatt-hour (kWh), down from the earlier proposal of $0.08.

Adani Group has not yet commented on the matter.

Last week, Adani clarified that its power purchase agreement with Sri Lanka remains intact, countering an AFP report claiming the deal had been revoked.

The group described the cabinet’s decision to reassess the tariff approved in May as a “standard review process” by the new government, reaffirming its commitment to invest $1 billion in Sri Lanka’s green energy sector.

Adani Green Energy’s agreement includes constructing two wind power plants with a combined investment of $442 million.

Sri Lanka, grappling with power blackouts and fuel shortages, is accelerating its transition to green energy to mitigate the impact of fluctuating imported fuel costs.

The U.S. bribery allegations have raised concerns among investors and partners, prompting at least one Indian state to reevaluate its power deal with Adani, while TotalEnergies has paused further investments in the conglomerate.

The Adani Group is also involved in developing a $700 million terminal project at Colombo’s largest port.