Business
Adani wind farms in Mannar and procedural challenges in Swiss auction
India’s Adani Group, which has committed SL’s single largest FDI in the power sector by committing to invest over a billion dollars in setting up ~500MW wind projects in Mannar and Pooneryn region, is facing resistance from a lobby group. The reason is unclear, says Vinayak Maheswaran – an equity and economic analyst at an equity markets platform who was also a former analyst at Wells Fargo Advisors.
He puts forward his argument as follows.
“Initially they said the project harms the environment. This when the Environment Impact Assessment (EIA) was done by a renowned professor and the government promised to implement the suggestions made in it and by public to minimize environmental impact. Several other Renewable Energy Organizations, Climate Organizations, environment organisations like the National Environment Caucus, Youth for Renewable Energy Organization, Sri Lanka Blue Green Alliance too conducted their own studies and have decided to back the project.”
“Then they raised questions on process not being followed. Sri Lanka’s Electricity Act allows proposals under G-2-G mechanism and the Adani’s project falls under this. The laid down process being followed for ages is government floats an RFP (Request for Proposal) and developers respond against it. As per procurement guidelines, any tender needs to go through the same process of Technical Evaluation by Project Committee of CEB & thereafter tariff negotiation by Cabinet Appointed Negotiation Committee (CANC). This was followed and done for the Adani project, which has been approved by the Public Utilities Commission of Sri Lanka (PUCSL). So where is the question of process not being followed?”
“In spite of the government negotiating an extremely competitive tariff (USC 8.26 or LKR 24.78/ unit), those against it are complaining on it being high and are seeking a Swiss auction (where new players are allowed to bid below the finalized tariff). Are they aware that Swiss auction is illegal in SL, and like most nations, SL too has put an end to this practice, citing procedural challenges? Incidentally, the same Swiss auction is not being demanded on other similar projects which have been cleared in the recent past and at a higher tariff. Double standards, anyone?”
Tariff negotiated by the government is clearly the best SL is getting currently is evident from the table below.
“None of the other recently approved projects are facing any opposition, inspite of their tariffs being higher. Take the example of an Australian firm which has proposed a 700 MW of Solar + Battery capacity with a tariff of 16 cents. Applying the same argument levelled against Adani that global benchmark tariffs for wind projects is lower than the finalized tariff, then this project’s global benchmark tariff is 9-11 cents. Has SL agreed to pay an extra US$ 1.9 billion over 25 years on this project? There is no whimper of protest for that.”
“Another example is the 100 MW Odamavadi Solar project, whose tariff too has been approved at 8.75 cents. As per the argument being made, when benchmarking with global benchmark of 2-3 cents, have we have agreed to pay an extra US$ 350 million over 25 years on this project?
What’s the real reason behind those opposed to the project? Why do we want to chase Adani away, which is reposing tremendous faith in the country by investing in during our time of crisis. Its success will attract fresh investments and will also help SL meet its sustainability goals. On government and civil society’s end, we must ensure the environment and CSR commitment made by it is met.”
“Policymakers and concerned citizens need to look at the larger picture of if somebody has the appetite for implementing such large scale RE projects, why aren’t they doing so, instead of delaying the existing ones? Does it not show that they are not interested in making any investments but rather derailing the projects coming on ground? There are many other wind & solar sites available in the country. Why aren’t they putting money where their mouth is and set up projects there at global benchmark tariffs they themselves are quoting?”
“SL needs RE energy and needs it quick. It needs partners who will offer competitive tariffs and set up projects in time and budget. Hence their antecedents are important. Adani Group is amongst world’s largest RE players and is setting up world’s largest RE park in India. It has a reputation to keep by completing the project in time and budget.”
“SL hasn’t seen a project of this scale which can potentially upend its energy dynamics and take the country closer to self-reliance and reduce dependence on fossil fuels. The Mannar + Pooneryn projects will save US$ 270+ Mn annually by displacing higher cost fuel-based tariffs. The project will generate ~1,500 million units of power per year – corresponding to meeting energy demand of 0.6 million households and equivalent to cutting 1.06 Mn tons of CO2 emission per year,” Maheswaran argues.
Business
AAC looks towards a future of vertical mobility in Sri Lanka
The Automobile Association of Ceylon (AAC) is looking beyond the traditional boundaries of mobility and road safety toward the future of mobility through sustainable developments in vertical mobility applications under the global guidance of the Fédération Internationale de l’Automobile (FIA).
AAC President Mr. Dhammika Attygalle believes AAC has the potential to contribute sustainable and proven systems, regulatory understanding, and international mobility frameworks toward developing Sri Lanka’s future mobility landscape while supporting the country’s broader economic development.
Representing Sri Lanka at the recent FIA Regional Drone and Vertical Mobility initiative held in Nepal was AAC Executive Committee Board Member Indula Sumithraarachchi, who participated alongside regional delegates and international mobility experts discussing the applications of vertical mobility systems and evolving regulatory frameworks covering mobility integration, safety, aviation and legal regulations.
“As mobility technologies evolve globally, we see vertical mobility as a natural extension of future mobility ecosystems. We believe vertical mobility is connected to sustainable areas not limited to future urban mobility, transport and logistics, infrastructure integration, safety frameworks, disaster and emergency response, and environmental efficiency,” he stated.
Drones are already being commercially utilized in Sri Lanka for dronegraphy (photography and videography using drones), agriculture, surveying and mapping, events, and marketing. However, it is important that greater attention is given toward safety standards, operational protocols, and aviation regulations, licensing, approvals and career professionalism as drone pilots within Sri Lanka in order to make these technologies safer and more accessible to the public.
International mobility experts increasingly recognize drones as part of a wider vertical mobility ecosystem operating alongside aviation and respective local regulatory frameworks. Experts explain that drone systems are helping countries establish regulatory structures, safety standards, technical expertise, aerial management systems, and operational frameworks that may eventually support broader future mobility technologies.
For AAC, the relationship between drones and vertical mobility represents a wider future mobility framework involving how people, services, safety, infrastructure, information, and transport systems may operate in more connected, intelligent, and efficient ways beyond conventional road-based transportation.
For decades, AAC has played an important role in Sri Lanka’s mobility sector through road safety advocacy, motoring assistance, tourism support services, driver awareness initiatives, and public mobility education. The association has continuously contributed toward improving safe mobility practices for Sri Lankan road users and motorists.
AAC now aims to position Sri Lanka within these evolving international mobility conversations while ensuring that future mobility development remains safe, responsible, and aligned with international standards.
The association also believes collaboration between regulators, aviation authorities, educational institutions, private sector innovators, and international mobility organizations will become increasingly important as future mobility ecosystems continue to develop globally.
Through FIA-supported international engagement and regional collaboration, AAC hopes to contribute toward building awareness and understanding of future mobility opportunities while ensuring Sri Lanka remains connected to emerging global transportation developments.
As mobility increasingly moves toward smarter, interconnected, and technology-driven systems worldwide, AAC’s initiatives into vertical mobility reflect its broader vision of supporting safe, progressive, and future-ready mobility solutions for Sri Lanka and future generations.
Business
Vietjet Air announces Colombo – Ho Chi Minh City route
Vietjet Air, Vietnamese new-age hybrid airline, has announced its first direct service connecting Colombo to Ho Chi Minh City at the Sri Lanka – Vietnam Trade, Investment and Tourism Cooperation Forum. The announcement took place in the presence of General Secretary and President of Vietnam To Lam, Prime Minister of Sri Lanka Harini Amarasuriya, and senior officials from both countries.
This is the airline’s first direct service between Sri Lanka and Vietnam, supporting the airline’s international expansion while contributing to stronger economic, trade, tourism, and people-to-people ties between the two nations.
The Colombo – Ho Chi Minh City route is expected to commence in August 2026 with four round-trip flights per week. Travelers from Colombo will soon enjoy affordable fares and seamless connectivity to Vietnam’s leading tourism and business hubs, along with convenient access through Vietjet’s extensive international flight network to major destinations across the Asia-Pacific region, including Australia, Japan, South Korea, China, and beyond.
Business
SDB bank and Hayleys Mobility forge strategic partnership to advance sustainable mobility and private vehicle leasing
SDB bank has entered into a strategic partnership with Hayleys Mobility Limited through the signing of a Memorandum of Understanding, reinforcing the bank’s commitment to expanding access to structured mobility financing while advancing its broader sustainability banking agenda. The collaboration brings together two established institutions to support customers seeking leasing solutions for private vehicles, with a notable emphasis on electric vehicles as part of a more future-focused approach to transportation.
The MoU was signed recently at the Hayleys Mobility office in Union Place, in the presence of senior representatives from both organizations. Representing SDB bank Kapila Ariyaratne, Executive Director and Chief Executive Officer, Manoj Akmeemana, Deputy Chief Executive Officer, Chitral De Silva, Chief Business Officer, Lahiru Ekanayake, Head of Leasing and Tharanga De Silva Chief Manager, Business Banking were participated. Hayleys Mobility Limited was represented by Managing Director Hasith Prematillake, Director Roshani Dharmaratne, Mr. Panduka Rathnayake – General Manager Finance, and Mr. Suraj Chularathne – Assistant General Manager.
The partnership is designed to expand access to private and sustainable leasing solutions across Sri Lanka, while also responding to growing interest in cleaner and more responsible mobility choices. By placing special focus on electric vehicle leasing, the initiative reflects SDB bank’s recognition of changing customer preferences and the importance of supporting more sustainable transport options through accessible financing.
In addition to supporting conventional private vehicle financing, the collaboration enables customers to benefit from a more integrated experience that brings together vehicle selection and financing under a single proposition. Through the combined reach of SDB bank and Hayleys Mobility, the partnership is expected to improve accessibility and convenience for customers across the country, including professionals, self-employed individuals, business owners and other private vehicle buyers looking for reliable, structured leasing solutions.
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