Adani facing rough weather in Sri Lanka
Suffering from challenging situation from Ceylon Electricity Board’s (CEB) anti-private sector stance and internal issues within the organization
Adani Group to raise $1-bn debt
New Delhi The Adani Group expanded its business activities in Sri Lanka in 2021, venturing into the port and renewable energy sectors. However, it has encountered significant challenges in establishing its presence in the renewable energy industry. These obstacles primarily stem from the Ceylon Electricity Board’s (CEB) anti-private sector stance and internal issues within the organisation.
The CEB’s extensive politicisation has impeded its ability to effectively support the incorporation of private entities into the renewable energy market. Both the Adani Group and other renewable energy investors are eagerly awaiting the drafting of the Power Purchase Agreement (PPA) by the CEB, as it is a crucial step in finalising their renewable energy projects.
The delay in drafting the PPA is not unique to Adani, but affects other renewable energy investors as well.
Other prominent business figures who have visited the Port City are facing similar challenges due to the absence of well-prepared laws under the Business of Strategic Importance (BSI) framework. State minister Dilum Amunugama recently acknowledged this issue and assured that significant efforts are being made by the oversight committee to address these concerns by drafting new investment laws.
These new regulations aim to rectify outdated rules that hinder investment opportunities, even when concessions are available. The oversight committee is actively working to resolve various issues, including the PPA and the BSI regulations.
Uncertainty Over Timeline
l Adani to commence RE projects in Sri Lanka depending on govt terms
l Timely completion of the PPA is crucial to establish a mutually-beneficial arrangement
l Policymakers must expedite the necessary groundwork
