In Sri Lanka’s northern district, the Adani Group has signed significant deals for two massive renewable energy generation projects. The agreement was struck to work together on renewable energy initiatives. This move came six months after Adani was awarded a big port terminal project in Colombo, which it is currently executing with a majority shareholding.
The Colombo-based Sunday times reports, āWhile it was not announced, the Ceylon Electric Board (CEB) also has a Memorandum of Understanding with Indiaās Adani Green Energy Ltd.ā
About the Power Project deal
For $500 million, it plans to produce a combined capacity of 500MW, projects are located in are in Mannar and Pooneryn the northern province of Sri Lanka.
The Mannar power project is on Sri Lankaās north-west coast. While the Pooneryn project is just south of Jaffna Province of Sri Lanka. New Delhi had previously in 2021, objected to the Chinese Energy Project in the same region stating its concern on proximity with Tamil Nadu state.
Background
Sri Lanka:
- Has peak demand of 2000 MW and is experiencing severe power and fuel shortages
- Longer power cut-offs, prompting civilians to hit the road to launch protest
- Stateās left with just $2.31 billion foreign reserve
- Struggling to pay for critical imports (food, fuel, medicines)
Facing the worst economic crisis in years, leading it to seek assistance from outside.
India- Sri Lanka proceeds so far
So far, India has credited Sri Lanka with a $1.4 billion line of credit. Sri Lankaās. A line of credit worth $500 million was extended by New Delhi to its neighbouring countries for fuel imports. While New Delhi also extended a SAARC Swap of $400 million in its financial package aid to Sri Lanka.
Sri Lanka’s Finance Minister Basil Rajapaksa is scheduled for a visit to New Delhi to finalize an extended line of credit of $1 billion. This will be his third visit to India in the last 3 months.
Published By : Revathy G Sanal
Edited By : Subbuthai Padma
