Sri Lanka to renegotiate power a purchase agreement for 484MW wind project with Adani. Credit: Piyaset/Shutterstock.

The government of Sri Lanka plans to renegotiate the power purchase agreement (PPA) with India’s Adani Green Energy for a 484MW wind power project, aiming to reduce the cost to below $0.06 per unit.

News agency the Press Trust of India (PTI) reports that the previous government’s decision to sign a 20-year PPA for the 484MW wind plants at 8.2 US cents per unit was contested, as local bidders had proposed lower prices.

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Sri Lankan government spokesman Nalinda Jayathissa was quoted by PTI as saying: “We would want it to be below 6 cents US.”

In December 2024, the new government decided not to proceed with the agreement at the purchase prices set by the previous government in 2023, as reported by Business Northeast.

The government denied reports that the Adani Green Energy projects in the northeastern regions of Mannar and Pooneryn would be cancelled.

However, the government-appointed committee reviewed the project, while Adani Green Energy denied the cancellation claims.

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The Adani Group has stated that “the Sri Lankan Cabinet’s decision of 2 January 2025 to reevaluate the tariff approved in May 2024 is part of a standard review process, particularly with a new government, to ensure that the terms align with their current priorities and energy policies.”

In June 2024, Adani Green Energy reportedly planned to invest more than $1bn in wind energy projects in Sri Lanka.

It is the country’s largest foreign direct investment and one of its most significant power projects.

The investment was aimed at establishing two wind farms with a combined capacity of 484MW.