Wickremesinghe slams Dissanayake govt for Adani energy project failure

Sri Lanka's former president Ranil Wickremesinghe has criticised President Anura Kumara Dissanayake-led government for failing to move ahead with India's Adani Group's Renewable Energy Project in Mannar.

Wickremesinghe made these remarks during a televised discussion on Saturday the text of which was released on Monday.

He also stressed the need for Sri Lanka to enhance economic cooperation with India to maximise results for the island nation.

Wickremesinghe said during his two-year term in 2022, he emphasised a South India-focused economic framework in areas of renewable energy, agriculture, and trade links. 

"I explored many avenues for economic cooperation with India. Regrettably, the current government has failed to pursue the Adani renewable project in Mannar."  He criticised them for failing to move ahead with the Renewable Energy Project in Mannar with Indian conglomerate, Adani.

He said he saw no logic in the NPP government's attempt to renegotiate the Adani green energy project.

"This would adversely affect all Indian investments," Wickremesinghe said.

On February 13, Adani Green Energy, the renewable energy arm of billionaire Gautam Adani's conglomerate, withdrew from two proposed wind power projects in Sri Lanka, following the Island nation's new government deciding to renegotiate tariffs.

The company was to invest a total of $1 billion in generating electricity from wind at two projects and laying transmitting lines to take it to users. The plan came under the scrutiny of the newly elected administration under President Dissanayake who wanted to reduce electricity costs.

The NPP in the run-up to last year's presidential election said it would cancel the Adani renewable project in the northeastern region.

After gaining power, the NPP Cabinet decided to renegotiate by holding onto the position that the purchase price agreed by the previous Wickremesinghe administration was expensive and hinted at corruption.

In response, Adani said they have decided to respectfully withdraw from the USD 400 million project after already incurring a five million dollar expenditure on it.

President Dissanayake said Sri Lanka had received bids for renewable projects which would cost the purchasing price half the Adani offered 8.26 US cents per unit.

Wickremesinghe's comments on Indian investments assume significance in the light of the proposed visit by Prime Minister Narendra Modi to Sri Lanka in the first week of April.

When asked whether the International Monetary Fund (IMF) programme was the only option for Sri Lanka, the former President emphasised that the ability to successfully restructure debt with international bondholders and bilateral creditors depends on an IMF guarantee.

"I urge the government to continue the policies introduced by my government. The country is still suffering from the economic crisis. It will face further difficulties if my programme is not completed."  Wickremesinghe became the President during a severe economic crisis after then-President Gotabaya Rajapaksa resigned amid public protests. The government managed to secure an IMF programme and began the path towards stabilising the country's economy.