Colombo: The new Sri Lankan government, led by Prime Minister Anura Kumara Dissanayake, has announced its intention to reassess the wind power project agreement granted to India’s Adani Group. The decision stems from concerns over energy sovereignty and a lack of transparency surrounding the project’s approval process by the previous administration.

The announcement was made during a Supreme Court session where a five-member bench was informed that the government’s review decision followed a Cabinet meeting held on October 7. The new administration has emphasized that this reconsideration aligns with its commitment to ensure transparency and uphold national interests in foreign investments. Critics have pointed out that the previous approval process did not adequately address environmental concerns and potential impacts on local communities.

The final outcome of the review will depend on the formation of the new Cabinet, which is expected to be finalized after the upcoming parliamentary elections on November 14. Cabinet Spokesman Vijitha Herath confirmed that a comprehensive decision on the project would be made once the government fully assumes its functions post-elections.

This development highlights the Dissanayake administration’s cautious approach toward foreign investments, prioritizing Sri Lanka’s energy sovereignty and the need for accountability in high-stakes agreements. Observers suggest that if the project is significantly altered or canceled, it could impact Sri Lanka-India economic relations, considering the strategic investments India has made in Sri Lanka in recent years.

The outcome of the elections will play a critical role in determining the future of this contentious project, as the new Cabinet’s stance will influence the government’s ultimate decision. (inputs from agencies)