P. K. Balachandran
The populist Dissanayake government has cancelled a major wind power project given to the Adanis in 2024 and appointed a fresh procurement committee.
In addition to facing troubles in Australia, Kenya, Bangladesh and the US, the Indian tycoon Gautam Adani is facing ouster in Sri Lanka. The populist Sri Lankan government of Anura Kumara Dissanayake has cancelled a major wind power project given to the Adanis and appointed a Procurement Committee to make recommendations on their proposal, which, in other words means, that the Adanis will have to start from scratch.
The Sri Lankan Cabinet of Ministers chaired by President Anura Kumara Dissanayake revoked a decision made by his predecessor Ranil Wickremesinghe in June last year, to award a 484 mw wind power plants in Mannar and Pooneryn in North Sri Lanka to Adani Green Energy SL Ltd (AGESL).
But the government did not shut the door to the Adanis. It has appointed a Procurement Committee to make recommendations regarding the Adani’s proposal. This could mean that the Adanis can still submit an amended proposal if they are interested in the project.
The original contract is currently in the Supreme Court with environmentalists, local citizens and professionals challenging it. The court was expected to give a ruling in March this year. But the government’s latest decision to cancel the contract and appoint a new committee to re-consider the contract means that the matter has been taken away from the court.