A senior Sri Lankan official who had claimed two days ago that Prime Minister of India Narendra Modi had exerted pressure on Gotabaya Rajapaksa to award a 500 MW power project to the Adani group headed by billionaire Gautam Adani has withdrawn his statement as the office of the Sri Lankan president “vehemently” refuted the allegations. The official had spoken about the 500 MW renewable energy project in the island nation’s northern Mannar district.
Chairman of the Ceylon Electricity Board (CEB) of Sri Lanka, MMC Ferdinando, appearing in front of a parliamentary panel in Colombo on 10 June, had claimed that during his conversation with Rajapaksa, the President had told him that Modi had put pressure on him to award the project to Adani.
The Sri Lankan official was addressing the Committee on Public Enterprises (COPE), and can be heard telling them that Rajapaksa “told me that he was under pressure from Modi.” The senior official told the committee that the President had asked him to give the project to Adani. The discussion between Rajapaksa and Ferdinando had allegedly taken place when he was summoned by the President following a meeting chaired by him.
However, the Sri Lankan official withdrew his statements soon after, saying he was “emotional”. Rajapaksa issued a swift denial, first on Twitter, where he said “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.”
Later, the office of the president issued a longer statement, “vehemently denying” influencing anybody in awarding the project. The statement mentioned that he “categorically stated that he had not at any time given authorisation to award a wind power project in Mannar to any person or any institution.” “The president vehemently denied the statement made by the Chairman of the Ceylon Electricity Board at the Parliamentary Committee on Public Enterprises in this regard,” the statement said.
The Sri Lankan president’s office noted that Sri Lanka was “currently in an acute shortage of power and President desires to expedite implementation of mega power projects as early as possible. However, no undue influence will be used in awarding such projects. Project proposals for large-scale renewable energy projects is limited, but special attention will be paid to the selection of institutions for the projects, which will be carried out strictly in accordance with the transparent and accountable system by the government of Sri Lanka.”
Some time ago, the Government of Sri Lanka had changed its laws to make competitive bidding unnecessary in awarding such energy projects. There was no immediate response from India or the Adani Group regarding the controversy.
The Adani Group has been increasing its presence in Sri Lanka over the past few years. In 2021, it bagged the contract to develop and run the strategically significant Western Container Terminal of Colombo Port, with a 51% stake. In March it inked deals for two renewable energy power projects, one in Mannar and the other in Pooneryn, both in the northern part of the country.
The opposition in Sri Lanka has accused the Rajapaksa government, which is in turmoil, of “pampering” Modi’s “friends” to allow them “backdoor entry” into the country.
Sri Lanka is facing a financial crisis. The island nation was left with around $ 1 million in foreign reserves last month, which led to riots on the streets in many parts of the country. Prime Minister Mahinda Rajapaksa, Gotabaya’s brother, stepped down. The president, however, refused to vacate his seat, bringing in formal rival and prime minister Ranil Wickremesinghe to replace Mahinda.
There is a scarcity of essentials in the country, especially fuel since the government did not have enough money to pay for it globally. India has since stepped in and provided $ 3 billion in assistance to the southern neighbour since January, through credit lines, currency swaps and other mechanisms.
Meanwhile, even though the Congress regime of yesteryears — Chimanbhai Patel, the chief minister of Gujarat in 1991-92 when the contract was signed — had facilitated the launch of the Adani business empire by leasing the Mundra port to the businessman at a throwaway price and just last week the party’s government in Rajasthan awarded a big solar project contract to the industrialist, former INC president Rahul Gandhi today hit out at the Modi government for its alleged interference in the Sri Lanka power project. Taking to his official Twitter handle, Gandhi said, “BJP’s cronyism has now crossed Palk Strait and moved into Sri Lanka.”
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