Colombo, February 13, 2025 – Adani Green Energy, a subsidiary of India’s Adani Group, has announced its decision to withdraw from the planned $1 billion wind power project in Sri Lanka.
The project aimed to develop 484 MW Renewable Energy Wind Farms in Mannar and Pooneryn, along with a 220 KV and 400 KV transmission network to distribute electricity to the southern part of the country.
In an official statement, the Adani Group confirmed its board’s decision to “respectfully withdraw” from the wind energy and transmission projects while remaining open to future collaboration if invited by the Sri Lankan government.
Despite securing most of the necessary approvals, Adani cited unresolved environmental clearances and ongoing Supreme Court litigation as key reasons for the withdrawal. The company also noted concerns over the Sri Lankan government’s recent decision to form new committees to renegotiate the project terms.
The Sri Lankan government had been in discussions with Adani to reduce the power tariff, which was initially set at US cents 8.62 per kilowatt-hour, as approved in May 2024. A new project committee appointed this year recommended lowering the tariff to below US cents 5.50, aligning with global market rates.
The Ministry of Power stated that the review process focused on legal compliance, environmental impact, and financial feasibility to ensure the project met national interests.
With Adani’s withdrawal, Sri Lanka may now seek alternative investors or renegotiate renewable energy initiatives to meet its long-term energy goals.
