Southern Nexus 150MW Solar Project Moves Ahead Following Court of Appeal Judgment

On 12th June 2025, the Court of Appeal of Sri Lanka delivered a significant judgment in favor of the Southern Nexus consortium, enabling the continuation of the 150MW Solar Power Project in Hambantota. This Court of Appeal decision marks a major milestone for Sri Lanka’s renewable energy sector and reaffirms the enduring relevance of the doctrine of legitimate expectations and the principles of natural justice in resolving administrative disputes, particularly in the context of complex infrastructure development.

Although the Southern Nexus consortium had signed Standardized Power Purchase Agreements (SPPAs) with the Ceylon Electricity Board (CEB) in March 2024 and had already commenced construction, the project was abruptly disrupted due to a combination of lapses in communication between certain state authorities and propagation of malicious and falsified information. This led to the arbitrary suspension of a critical land release.

The suspension of the land release was a significant setback for a project that had already successfully navigated major challenges, including the Covid-19 pandemic, ensuing economic crisis and a fluctuating policy environment marked by three changes in political leadership and the corresponding bureaucratic reshuffles.

Having exhausted all avenues for dialogue with the relevant authorities, the Southern Nexus consortium sought recourse before the Court of Appeal of Sri Lanka.

The Court of Appeal granted relief by inter alia issuing writs in the nature of mandamus and prohibition, compelling the Mahaweli Authority of Sri Lanka to proceed with the land release, and prohibiting the CEB and the Sri Lanka Sustainable Energy Authority from terminating or refusing to extend the SPPAs or energy permits based on delays beyond the control of the project developers.

Our Role

Dulanga Cumaranatunga, Managing Counsel of FortuneX, has served as the legal advisor to the Southern Nexus consortium since the project’s inception in 2021, advising on all key aspects of the project, including:

• Project structuring and legal strategy

• Investment and project financing

• Land lease arrangements

• EPC contract negotiations

• Power purchase agreements (SPPAs)

• Regulatory compliance and approvals

We remain proud to support the Consortium in its commitment to expanding Sri Lanka’s renewable energy capacity through legally sound and commercially viable infrastructure development.

Litigation Representation

Litigation proceedings were led by a distinguished team comprising:

• Presidents’ Counsel: Mr. Ali Sabry, Mr. Kuvera de Zoysa, Mr. Saliya Pieris, and Mr. Upul Kumarapperuma

• Senior Attorneys-at-Law: Mr. Ruwantha Cooray and Mrs. Chandika Silva

• Attorneys-at-Law: Mr. Joshua Moraes, Mrs. Shehani Alwis, Mr. Samuditha Kumarasinghe, Ms. Duvini Godagama, Mr. Sajana de Zoysa, Mr. Geeth Karunarathne, and Mr. Rukshan Mendis

• Instructing Attorney: Mr. Pubudu Kalahewatta

The legal acumen and strategic advocacy of the litigation team were instrumental in securing this landmark judgment.