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Adani Green Energy has announced its decision to withdraw from two planned wind power projects in Sri Lanka. The company communicated this move through a letter sent to a Sri Lankan government agency, stating that the decision was made by its Board. However, Adani Green expressed its willingness to collaborate with Sri Lanka in the future, should the government seek such engagement.
The two wind power projects, set to be located in Mannar Town and Pooneryn Village in Sri Lanka’s northern province, were part of a larger initiative aimed at reducing the country’s reliance on imported fuel. The renewable energy division of Adani had allocated $442 million for the wind power generation and transmission projects in Sri Lanka, with a total projected cost of $1 billion.
In May 2024, the former Sri Lankan government had reached an agreement with Adani Green Energy to purchase electricity from the proposed wind power facilities at a rate of $0.0826 per kilowatt. This deal was part of Sri Lanka’s broader strategy to combat its power shortages, which had severely impacted the nation during the 2022 economic crisis.
Despite the strategic importance of the projects, there was opposition from local activists who argued that smaller renewable energy initiatives could deliver electricity at a much lower cost than Adani’s proposal.
Additionally, the Sri Lankan government had initiated discussions with the Adani Group last month to renegotiate the cost of electricity from these wind power projects. The country has been working to accelerate renewable energy development in response to the economic crisis, which included severe power blackouts and fuel shortages.
The Adani Group is also involved in the construction of a $700 million terminal project at Sri Lanka’s largest port in Colombo, further strengthening its footprint in the region.
