The chairperson of the Sri Lankan Ceylon Electricity Board (CEB), MMC Ferdinando, stepped down just three days after claiming that President Gotabaya Rajapaksa had urged him to award a contract for a wind power project in Mannar to Adani Group due to pressure from Indian Prime Minister (PM) Narendra Modi.
Offering testimony before the parliamentary Committee on Public Enterprises (COPE) on Friday, Ferdinando alleged that Rajapaksa had summoned him on November 24 following a meeting with Modi and ordered him to give the contract to the Indian company. Fernandino subsequently told then-Finance Secretary SR Attygalle to do the needful and highlighted that the Mannar project was a “government to government deal.”
However, the very next day, he retracted his statement, claiming he was “compelled without limitation” to name the Indian PM due to the accusatory line of questioning, which he said had made him “emotional” because of the “unreasonable allegations levelled against me.” He thus withdrew his statement and apologised unconditionally.
Here is how Modi was Adani’s agent in Sri Lanka! pic.twitter.com/2zkDI4HRv4
— Ashok Swain (@ashoswai) June 13, 2022
According to a letter dated November 25, 2021, accessed by NDTV, Ferdinando had previously urged the Finance Ministry to expedite the approval of the 500 Megawatt project in Mannar, citing “directions by the Prime Minister” to declare that the project was granted by the Indian government. The letter added that “both heads of the countries are in agreement to realise this investment in Sri Lanka, to meet the present day FDI crisis.”
However, on Sunday, President Rajapaksa took to Twitter to respond to Ferdinando’s statement, saying that he strongly denied that he had instructed the project to be awarded to any particular individual or entity.
Big Breaking - -
— krishanKTRS (@krishanKTRS) June 13, 2022
SriLanka top officer on how Government of India got Power Project to Adani ....
You should be trialed in Supreme Court of India and Srilankan Court too @PMOIndia .. pic.twitter.com/9HSru5ye3I
His office also released a statement “vehemently denying” the claims. The release further highlighted that the expedition of the projects was to address the “acute shortage of power” in Sri Lanka. It clarified that there was “no undue influence” in awarding the projects, saying the process was “carried [out] in accordance with the transparent and accountable system” of the government.
Responding to the controversy, the Adani Group released a statement saying that it was “disappointed” by CEB chair’s comments as the company merely wished to “address the needs of a valued neighbour.” The spokesperson further remarked, “As a responsible corporate, we see this as a necessary part of the partnership that our two nations have always shared.”
The now-former CEB chief’s statement came just a day after the parliament passed an amendment to ban competitive bidding for energy projects through the Electricity Amendment Bill. It sought to remove restrictions on power generation licenses of individuals and entities that generate power over 25 megawatts by sidestepping the bidding requirement.120 Members of Parliament voted in favour of the amendment, with 13 abstaining and 36 others voting against.
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
Supporting the amendment, Minister of Power and Energy Kanchana Wijesekara said the bill would remove legal obstacles that currently allow officials to block critical projects from being implemented. He said it would also help address the country’s power crisis.
However, opposition parties criticised the government for rushing the bill to facilitate energy deals with the Adani Group, particularly the Mannar wind power plant.
The Samagi Jana Balawegaya (SJB), the main opposition party, argued that every project beyond 10 megawatts should be allotted only after a competitive bidding process. However, this clause did not get the required support in the parliament and was not included in the adopted amendment.
I welcome the adoption of the Sri Lanka Electricity (amendment) bill. This allows rapid deployment of cost effective renewable energy to the grid. Thank you @kanchana_wij for his seeing this through.
— Ranil Wickremesinghe (@RW_UNP) June 9, 2022
The party’s leader, Nalin Bandara, argued that the amendment was being introduced to “make way” for unfair project allotments like those to Adani Group. Another party member, Harsha de Silva, said that the elimination of the competitive bidding process would create room for corruption.
The opposition had previously accused President Rajapaksa of giving “backdoor entry” to “Modi’s friends.” SJB leader Ajith Perera said in March that while India had provided much needed financial assistance to Sri Lanka, that “doesn’t mean our renewable energy sector’s most valuable lands and resources can be stolen for [Modi’s] friend Adani.” Moreover, he said that eliminating competition would be detrimental to the island nation’s “battered economy” and aggravate “balance of payment issues.”
The CEB Engineers’ Union also said, “Arrangements are being made at a rapid pace to gift the most prolific wind energy belt in the country.” They urged the government to “stop the handover of the country’s wind and solar resources to the Adani Group […] without following the competitive bidding process.”
Privileged to meet President @GotabayaR and PM @PresRajapaksa. In addition to developing Colombo Port's Western Container Terminal, the Adani Group will explore other infrastructure partnerships. India's strong bonds with Sri Lanka are anchored to centuries’ old historic ties. pic.twitter.com/noq8A1aLAv
— Gautam Adani (@gautam_adani) October 26, 2021
In December, the Adani Group was awarded contracts for two wind power projects worth $500 million in Mannar and Pooneryn. He had also met with President Rajapaksa and erstwhile PM Mahinda Rajapaksa in October, soon after which he secured a deal to develop the Western Container Terminal of the Colombo Port with a 49% stake, alongside a Japanese company.
Speaking to The Indian Express back in January, Sri Lankan High Commissioner to India Milinda Moragoda said that the Mannar project will allow for electricity to be exported by undersea cables. The project comes at a critical time for Sri Lanka, which continues to face power cuts of up to and above 10 hours on a daily basis.