The Sri Lankan government, under the leadership of President Anura Kumara Dissanayake, has canceled a contentious decision made by the previous administration to award 484 MW of wind power projects in Mannar and Pooneryn to Adani Green Energy SL Ltd. The move, announced by the Cabinet of Ministers on December 30, aligns with the President’s election promise to prioritize transparency, environmental protection, and public interest in renewable energy development.
The original deal, approved in June 2024 by former President Ranil Wickremesinghe’s administration, faced widespread criticism. Key objections centered around the uncompetitive pricing of 8.26 US cents per kilowatt hour, significantly higher than locally tendered rates as low as 4.88 US cents. Environmental groups, including the Wildlife and Nature Protection Society and Environmental Foundation Ltd., opposed the project, citing inadequate Environmental Impact Assessments and the ecological risks posed to Mannar, a vital habitat for migratory birds. Local communities, represented by the Bishop of Mannar, also raised concerns about the project’s impact on livelihoods and traditional industries in the area.
Biodiversity scientist Rohan Pethiyagoda, a vocal critic of the project, hailed the decision as a victory for environmental and social justice. He commended President Dissanayake for delivering on his promise and called for further action, urging the government to release all related documents to the Bribery Commission and initiate a thorough investigation into the deal. Pethiyagoda questioned the rationale behind the original agreement, which involved a 70% premium over local bids, amounting to billions of dollars. He stressed the need to identify those responsible for what he described as an attempt to defraud the public.
The Cabinet has appointed new committees to reassess the project and ensure future decisions adhere to an open and transparent bidding process. While there is speculation that bids may be limited to Indian companies, Pethiyagoda expressed hope that any restrictions would still allow for fair competition, enabling Adani and other firms to compete on equal terms.
This decision marks a significant cultural shift in Sri Lanka’s governance under the National People’s Power (NPP) government, with an emphasis on accountability and transparency. Unlike the previous administration, which faced allegations of impropriety, the NPP has been praised for its straightforward approach, including the routine filing of the Cabinet’s decision in court without political theatrics. Pethiyagoda highlighted this as a critical step forward for Sri Lanka, noting that the government’s actions reflect a commitment to fairness and environmental integrity.
The revocation of the Adani contract is seen as a turning point in Sri Lanka’s renewable energy sector. By rejecting a deal fraught with controversy and moving toward international competitive bidding, the Dissanayake administration aims to position the country as a leader in sustainable and ethical energy development.
