Power and Energy Minister Kumara Jayakody today (16) clarified that the recent withdrawal of a prominent Indian investor from a proposed wind power project in northern Sri Lanka was a mutual decision following tariff negotiations, and not a sign of strained investor relations.

Responding to a journalist’s question during a press briefing, which indirectly referred to Adani Green Energy's exit from the Mannar wind project, the minister emphasized that the government is committed to maintaining a business-friendly environment and that the investor is still actively engaging with Sri Lanka’s energy sector.

“There’s no question of compensation in the way it’s being portrayed,” Minister Jayakody said. “Like in any contract, there are refundable and non-refundable deposits. What we are returning is simply part of what they had already deposited.”

Jayakody explained that the proposed tariff rates were too high for Sri Lanka’s current economic context. “We negotiated with them, and they accepted our proposal and withdrew respectfully. That’s all. The media sometimes misleads the public,” he added.

Despite the project’s cancellation, the minister said the Indian company had already obtained bidding documents for new tenders recently opened in Mullikulam. “They are still participating. They are not outside our territory. They are working with us and doing business with us,” he said.

Jayakody dismissed suggestions that the incident had harmed Sri Lanka’s reputation, stating that “some people try to show there is a problem, but the company and the government continue to work closely together.”

The clarification comes amid ongoing questions about Sri Lanka’s foreign investment climate and the government's approach to large-scale renewable energy partnerships.