Adani Green Energy’s stock experienced a slight decline, dropping by 0.93% to close at Rs 1,011.95, after rumors surfaced about Sri Lanka canceling a power purchase agreement (PPA) with the Adani Group. The stock even hit a daily low of Rs 1,008 during trading hours. However, the Adani Group has strongly denied these reports, calling them “false and misleading.”
The Adani Group, led by billionaire Gautam Adani, has firmly stated that the reports of Sri Lanka revoking the PPA are inaccurate. The group emphasized that the agreement for its 484 MW wind power projects in Mannar and Pooneryn remains intact. In a recent statement, the company clarified that the Sri Lankan Cabinet’s decision on January 2, 2025, to reevaluate the tariff approved in May 2024 is part of a standard review process. This is especially common with a new government to ensure the terms align with their current priorities and energy policies. The group also reiterated its commitment to investing $1 billion in Sri Lanka’s green energy sector, aiming to boost renewable energy production and support the country’s economic growth.
Earlier, news agency AFP reported that Sri Lanka’s President Anura Kumara Dissanayake’s administration had launched an investigation into Adani’s local projects. This followed allegations of bribery and financial misconduct raised by the US on November 19, 2024. However, the Adani Group has dismissed these allegations as baseless.
In May 2024, the former Sri Lankan government had agreed to purchase electricity from Adani’s proposed wind power facility at a rate of $0.0826 per kilowatt. The project, planned for the northwest region of Sri Lanka, aimed to generate 484 MW of renewable energy. However, the deal faced opposition from activists and environmental groups. Critics argued that smaller renewable energy projects could provide electricity at a much lower cost compared to Adani’s proposal. Additionally, the project has been challenged in Sri Lanka’s Supreme Court over environmental concerns, particularly regarding its impact on the coastal areas of Mannar and Pooneryn.
Adani’s Commitment to Green Energy
Despite the challenges, the Adani Group remains steadfast in its commitment to investing in Sri Lanka’s renewable energy sector. The $1 billion investment is expected to play a significant role in advancing the country’s green energy goals and fostering sustainable development.
Conclusion
The Adani Group has categorically denied the cancellation of its power purchase agreement with Sri Lanka, labeling the reports as false. While the company’s shares experienced a minor dip, the group continues to focus on its long-term vision of driving renewable energy growth in Sri Lanka. The ongoing review of the tariff by the Sri Lankan government is seen as a routine process, and Adani remains optimistic about the future of its green energy projects in the region. By addressing the rumors and reaffirming its commitment, the Adani Group aims to maintain its reputation as a key player in the global renewable energy market.
