SRM(Switched Reluctance Motor) drives require the accurate position information of the rotor. These informations are generally provided by a tacho generator or digital shaft-position encoder These speed sensors lower the system reliability and require special attention to noise. This paper describes a new approach to estimating SRM speed from measured terminal voltages and currents for speed sensorless control. The described method is based on the sliding mode observer. The rotor speed and position observers are estimated by the adaptation law using the real and estimated currents. However, the conventional adaptive sliding mode observer based on the variable structure control theory has some disadvantages that the estimated values including the high-frequency chattering and the steady state error generated due to the infinite feedback gain chosen and the discontinuous control input. To reduce the chattering and steady state error, an integrator is also inserted in the sliding mode observer strategy. The described adaptive sliding mode observer decreases the vibration to the switching hyper-plane of the sliding mode by adding integrator. The described methodology incorporates the Lyapunov algorithm to drive the rotor speed and the stator resistance such that it can overcome the problem of sensitivity in the face of SRM parameter variation. Also, without any mechanical information. The rotor speed of SRM is obtained form adaptive scheme. The described method is verified through the simulation and experiment.