Indian Prime Minister Narendra Modi had insisted to his Sri Lankan counterpart Gotabaya Rajpaksa that the 500 MW wind power plant in Sri Lanka be awarded to the Adani group, according to the head of Sri Lanka’s electricity authority. Ceylon Electricity Board Chairman MMC Ferdinando, during a Committee on Public Enterprises hearing in the Sri Lankan Parliament earlier this week, testified that he was told by Rajapaksa that PM Modi was insisting that energy projects be awarded to the Adani group. However, two days later, the Chairman said he was withdrawing his statement, telling News First that he was “emotional” and under pressure and made a false statement.
A video of his testimony, as reported by Sri Lankan news organisation News First, the Chairman told the President that this was not a matter related to the electricity authority or him, and should be referred to the Board of Investment. As per his testimony, the Chairman then informed the same to the Treasury Secretary in writing, and asked him to look into the matter. He added that he pointed out this was a government-to-government deal.
“On November 24th [2021], the President summoned me after a meeting and said India's Prime Minister Modi is pressuring him to hand over the project to the Adani group. I said this matter doesn't concern me or the Ceylon Electricity Board and that this concerns the Board of Investment,” he said, according to News First’s translation.
The panel’s chair Charitha Herath can then be heard asking if the deal would be considered to be “unsolicited”. In response, Ferdinando agrees and says yes, this is a government-to-government deal, but negotiations should take place according to the least cost policy mentioned in the act.
A day after the parliamentary hearing, Prime Minister Gotabaya denied the same. “Re a statement made by the #lka CEB Chairman at a COPE committee hearing regarding the award of a Wind Power Project in Mannar, I categorically deny authorisation to award this project to any specific person or entity (sic),” he tweeted.
Re a statement made by the #lka CEB Chairman at a COPE committee hearing regarding the award of a Wind Power Project in Mannar, I categorically deny authorisation to award this project to any specific person or entity. I trust responsible communication in this regard will follow.
— Gotabaya Rajapaksa (@GotabayaR) June 11, 2022
The Adani deal figured in Sri Lanka's parliamentary debate on the Electricity Amendment bill, which was passed in Parliament on Thursday, June 9, amid resistance from Opposition lawmakers and industry trade unions. The parliamentary hearing where Ferdinando gave his testimony was a day after this.
The opposition charged that an unsolicited government-to-government agreement to build a 500 MW wind power plant in the northern coast with the involvement of the Adani Group was key to the amendments to the 1989 Act. The amendments to the Sri Lanka Electricity Act were passed with 120 votes in favour of the amendments against 36 in the 225-member Parliament amid strong resistance from power sector trade unions in the state-run Ceylon Electricity Board (CEB). Thirteen MPs abstained in the voting.
The CEB engineers union alleged that the government was rushing through the amendments to give large renewable energy deals to Adani group, which has signed an unsolicited government-to-government agreement to build a 500 MW wind power plant.
The main opposition SJB wanted projects beyond 10 MW capacity to go through a competitive bidding process, but the majority of the government MPs voted against the clause. The amendments proposed to facilitate the new generation plants and overhead lines with an aim to fast track renewable energy projects.
There was no announcement regarding the deal with Adani. However, projects inked the same day with between the Indian National Thermal Power Corporation (NTPC) and the Ceylon Electricity Board was announced.
Opposition party Samagi Jana Balawegaya’s head Ajith Perera, a former State Minister of Power and Renewable Energy, told the Hindu in March that while India under PM Modi has given the country crucial financial assistance, it “doesn’t mean our renewable energy sector’s most valuable lands and resources can be stolen for his friend Adani”. He added that Adani would be welcome through proper channels.
“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,” Perera said at the time.
With PTI inputs