Adani Green Energy withdraws from $1 Billion wind energy project in Sri Lanka

Adani Green Energy, a subsidiary of India’s Adani Group, has officially announced its decision to withdraw from its proposed $1 billion renewable energy wind farm project in Sri Lanka.

As outlined in a letter to the Board of Investment (BOI), the project aimed to establish 484 MW wind farms in Mannar and Pooneryn, along with the development of a 220 KV and 400 KV transmission network to enhance Sri Lanka’s energy infrastructure. The initiative was expected to bring significant benefits to the country, including the creation of Corporate Social Responsibility (CSR) initiatives focused on healthcare, education, and infrastructure development in local communities.

Adani Green confirmed in the letter that the company had invested approximately $5 million in pre-development activities, such as acquiring land and securing the necessary clearances. Despite obtaining most of the required approvals, the project faced obstacles, particularly with unresolved environmental clearance issues for the Mannar site and an ongoing Supreme Court case.

Over the past two years, Adani Green participated in more than 14 rounds of discussions with the Ceylon Electricity Board (CEB) and other Sri Lankan government departments. These discussions culminated in the finalization of a Power Purchase Agreement with a 20-year tariff. However, the creation of a new Cabinet-appointed Negotiations Committee (CANC) and Project Committee (PC) to renegotiate the project’s terms led the company to reconsider its involvement.

In its letter, Adani Green expressed respect for Sri Lanka’s sovereignty and confirmed that, while the company was withdrawing from the project, it remained open to future development opportunities in Sri Lanka.

The Sri Lankan government has yet to issue an official response to Adani Green’s withdrawal. However, President Anura Kumara Dissanayake recently voiced concerns about the high tariff proposed by Adani during his visit to New Delhi, which may have influenced the project’s outcome.