Adani Group entering country through back door, says Sri Lanka’s Opposition 

SJB slams Rajapaksa govt. for “pampering PM Modi’s notorious friends”

The Adani Group’s “back door” entry into Sri Lanka’s energy sector disrupts the country’s competitive electricity generation system, the Opposition has said, accusing the Rajapaksa government of “pampering” Prime Minister Narendra Modi’s “notorious friends”.

“It is with deep regret that we note that the Adani Group has chosen the back door to enter Sri Lanka. Avoiding competition is not something we take kindly. It hurts our battered economy, aggravates the balance of payment issues, and causes further misery to our citizens,” said Ajith P. Perera, chief executive of the Samagi Jana Balawegaya (SJB or United People’s Force), Sri Lanka’s largest opposition party.

The statement follows a recent agreement signed by India’s Adani Group to set up two renewable energy projects in Mannar and Pooneryn, in Sri Lanka’s Northern Province. The Memorandum of Understanding (MoU), which official sources confirmed was signed on March 11, 2022, has drawn attention, also for the apparent secrecy around it.

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The development came to light only after Sri Lankan newspapers reported on the deal, quoting officials in Colombo. The agreement for two-large scale renewable energy projects, with an estimated investment of $ 500 million, had been inked the same day the National Thermal Power Corporation (NTPC) of India formalised an agreement with Ceylon Electricity Board (CEB), to jointly set up a solar power plant in Sampur, in Sri Lanka’s eastern Trincomalee district. However, the agreement involving the Adani Group was not made public by either side.

“PM Modi may have given us crucial financial assistance during our current economic crisis, but that doesn’t mean our renewable energy sector’s most valuable lands and resources can be stolen for his friend Adani...The [Rajapaksa] government has many decent ways to thank PM Modi rather than pampering his notorious friends,” Mr. Perera said, adding that a global player like Adani would be “most welcome” through proper channels.

A former State Minister of Power and Renewable Energy, Mr. Perera said that over the years, Sri Lanka had gained “a good handle” on renewable energy development, establishing a “robust competitive system” to gain the best value from private investments.