• U.S. Corruption Allegations Trigger Project Annulment

Unmesh Gujarathi
Sprouts News Exclusive

The Sri Lankan government has annulled the Power Purchase Agreement (PPA) with Adani Green Energy Limited. This decision follows allegations of corruption against the Adani Group by U.S. authorities. In May 2024, Sri Lanka’s previous administration had approved a $442 million investment for a 484 MW wind energy project. The project aimed to establish wind power plants in the Mannar and Pooneryn regions.

Reason for Cancellation

According to a senior official from Sri Lanka’s Ministry of Power and Energy, the agreement has been revoked, although the project itself is not entirely shelved. The government is now forming a committee to review the project.

The agreement faced opposition from several activists, who claimed that smaller energy providers were willing to supply electricity at significantly lower prices compared to the Adani Group.

Adani Group’s Response

The Adani Green Energy Group has denied reports of the project’s cancellation. Speaking to Sprouts, a spokesperson for the group stated, “This project has not been terminated. The Sri Lankan government is reviewing the tariff, which is a routine process.” The group also reiterated its commitment to investing $1 billion in Sri Lanka’s green energy sector.

Previous Controversies and Corruption Allegations

This is not the first controversy surrounding the project. In 2022, the award of the project to the Adani Green Energy Group without a formal bidding process led to widespread protests in Sri Lanka. More recently, U.S. officials accused the Adani Group of offering bribes to secure green energy projects.

International Impact

Following this decision, countries like Bangladesh and Kenya have also begun reviewing their projects with the Adani Group, signaling potential global repercussions.

Sprouts, a leading and highly discussed newspaper in Mumbai, stands firmly with its readers. Our team consistently exposes the misdeeds of fraudster Gautam Adani without bowing to pressure or favor. Stay informed- read Sprouts daily.

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Unmesh Gujarathi
Editor in Chief
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