Adani project: New Govt. slides from cancellation to review?

• Despite a pre-election promise to cancel the wind power deal with India’s Adani Group, the new NPP government is now seeking only to review the project after the conclusion of the general election

National People’s Power (NPP) leader Anura Kumara Dissanayake, in the run up to the September 21 presidential election vowed to cancel Indian conglomerate Adani’s 450 MW wind power project in Sri Lanka if elected.   

Dissanayake said the agreement was corrupt and against Sri Lanka’s interests.  

However, Foreign Minister Vijitha Herath, at the weekly Cabinet meeting on Tuesday, said that the government would give a fresh look at it after the election.  

Herath on Tuesday said no policy decisions on major projects would be taken before the parliamentary poll.   

Any challenge to the deal would be a blow to Gautam Adani’s ambitions, as the group led by Asia’s second-richest person looks to develop multiple infrastructure projects in the island nation. Projects in the works include expansion of the Colombo container-ship port backed by the US Development Finance Corp.  

Adani has proposed two wind projects in Sri Lanka — one in Mannar and a second in Pooneryn, both located in the country’s northeast. The Mannar project is separately facing court challenges from environmental groups over threat to wildlife, and complaints about alleged lack of transparency in the award of the project.  

Currently, there is a court case going against the project over some environmental concerns.  

Indias External Affairs Minister Dr.S.Jaishankar also visited Sri Lanka on October 4.