By Sulochana Ramiah Mohan/Ceylon Today
Colombo, March 30 – The Sri Lankan Deputy Minister of Industries and Entrepreneurship, Chathuranga Abeysinghe, in an interview with Ceylon Today, said that if investors propose high rates, like in the Adani power project, his government would not accept such proposals.
“We won’t accept it. Projects must go through a competitive bidding process,” he said. He emphasised Sri Lanka’s strong renewable energy potential and expressed confidence that opening the market would highlight its benefits, particularly within the BIMSTEC region, where Sri Lanka aims to become a net energy exporter.
He added that while the Government was open to investment, it needed to adhere to its policy and that Adani’s proposal included a 22 per cent country risk component, which pushed the price too high.
“We are open to discussions if projects benefit both nations. However, we don’t automatically trust previous government agreements. Each must be reassessed and, if necessary, renegotiated to align with our strategic economic plan,” he explained.
When questioned about the country’s investment climate and its energy strategy, Abeysinghe said that issues surrounding Adani’s wind power project, which reportedly faced challenges beyond the tariff, and associated bottlenecks, were a key reason why the public voted for a change in government. He explained that the project faced difficulties due to its pricing structure, which did not align with Sri Lanka’s strategy for energy projects.
“The pricing wasn’t aligned with our strategy,” Deputy Minister Abeysinghe said, highlighting that Sri Lanka aims for a price below USD 0.06 per unit for renewable energy projects.
On Adani’s exit and impact on Sri Lanka’s investment image, the Deputy Minister stated, “Many investors will come here. That particular project was unsolicited—it wasn’t a government-to-government (G2G) project. We follow policy, so we are not overly concerned about this outcome.”
He reassured that the Government is committed to creating an attractive environment for investment, but only at the right price, maintaining a strong focus on economic strategy.
The interview also touched on Sri Lanka’s ongoing agreements with India, including the proposed bridge and energy cooperation initiatives. The Deputy Minister confirmed that the Government is continuing to evaluate all projects. He mentioned the President’s recent visit to India and Prime Minister Modi’s upcoming visit as key opportunities for further negotiations.
Regarding projects such as the Trincomalee Port and oil tanks, he reiterated that the Government remains open to negotiations with both India and China. “Our government follows a clear strategic growth plan. All agreements will be assessed with national interest in mind,” he said.
As Sri Lanka navigates its investment strategy, the Deputy Minister said they will adopt a cautious but optimistic approach, ensuring that future projects align with the country’s economic objectives and national interests.
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Sri Lanka, India, Adani Power. Mannar project, Dispute over tariff, Project stalled,
