Sri Lankas new government said it will review a wind power deal with the Adani Group, throwing a fresh hurdle for the Indian conglomerate as it seeks to expand abroad.The previous administrations approval of electricity prices for Adani Green Energy Ltd.s projects was a problem, Foreign Minister Vijitha Herath told reporters after a meeting of the Cabinet ministers on Tuesday.
The new government would give the deal a fresh look after parliamentary elections are held Nov.
14, he said.The move to reassess the Adani Green deal follows through on a campaign pledge by newly elected president Anura Kumara Dissanayake, who was swept into office last month after a closely contested three-way race.
Dissanayake had called the project a threat to Sri Lankas energy sovereignty and vowed to cancel it.Herath on Tuesday said no policy decisions on major projects would be taken before the parliamentary poll.
Despite Dissanayakes victory, his bloc only had three seats in Sri Lankas 225-seat legislature.Any challenge to the deal would be a blow to Gautam Adanis ambitions, as the group led by Asias second-richest person looks to develop multiple infrastructure projects in the island nation.
Projects in the works include expansion of the Colombo container-ship port backed by the US Development Finance Corp.Indias Ministry of External Affairs didnt respond to an email seeking comment.
An Adani Group representative didnt immediately respond to requests for comment.Adani has proposed two wind projects in Sri Lanka one in Mannar and a second in Pooneryn, both located in the countrys northeast.
The Mannar project is separately facing court challenges from environmental groups over threat to wildlife, and complaints about alleged lack of transparency in the award of the project.Source: Bloomberg--Agencies