Adani Green Energy shared on Thursday, February 13, 2025, that it has exited Sri Lanka’s $442 million power project. The company exited after the new Sri Lankan government decided to negotiate tariffs and make a modification to the accord. The company shared that it’s still committed to Sri Lanka for any future collaboration if the government desires to do so.
Adani Green Energy has been in discussions with the Ceylon Electricity Board (CEB) and government departments for the last two years to set up two 484 MW (megawatt) renewable energy wind farms in Mannar and Pooneryn, Sri Lanka. The company states it has spent $5 million on predevelopment activities as of now.
In May 2024, the previous Sri Lankan government agreed to purchase power from wind plants built by Adani Green Energy. The project was supposed to be completed by mid-2026.
Following this, the new government led by President Anura Kumara Dissanayake revoked the power purchase agreement. The project also encountered hurdles, including opposition from environmental groups and legal challenges in the Sri Lankan Supreme Court. This compelled the company led by Gautam Adani to pull out of the project.
After learning about the renegotiation of the agreement, Adani Green Energy wrote a letter to the Sri Lankan Government stating, “This aspect was deliberated at the Board of our company, and it was decided that while the company fully respects the sovereign rights of Sri Lanka and its choices, it would respectfully withdraw from the said project.”
