Author: PPD Team Date: 17/02/2025
Adani Green Energy, part of India’s Adani Group, has decided to withdraw from two proposed wind power projects in Sri Lanka due to financial challenges. The decision follows recent discussions with the Sri Lankan government regarding the reduction of power generation costs.
Sri Lanka’s capital, Colombo, had aimed to lower the cost of power to $0.06 per kilowatt hour, down from the initial $0.08. However, Adani Green Energy deemed the projects “financially unviable” in light of the revised cost, according to a company spokesperson.
This move is part of a broader review of Adani Group projects in Sri Lanka, prompted by accusations from US authorities in November 2024, alleging a bribery scheme involving the company’s founder, Gautam Adani, and other executives. Adani Group has denied the allegations.
Despite the withdrawal, Adani Green Energy has expressed its continued commitment to Sri Lanka and openness to future collaborations if the government seeks them. The proposed wind farms were to be built in the northern town of Mannar and the village of Pooneryn, with a combined capacity of 484 MW and associated transmission lines. The project was expected to be completed by 2026.
The agreements for the projects were signed in May 2024 under the interim government led by President Ranil Wickremesinghe. Additionally, the Adani Group is progressing with a $700 million terminal project at Colombo, Sri Lanka’s largest port.