Adani Green Exits $1 Billion Sri Lanka Wind Project

13 Feb 2025 , 07:51 PM

Gautam Adani’s Adani Green Energy has decided to exit the proposed $1 billion wind energy project in Sri Lanka. The company cited significant delays in the project, including unresolved environmental clearances, as a key reason for walking away from the project, which is the subject of a Supreme Court case.

While Adani Green had received most of the approvals and made substantial progress with land acquisition and pre-development activities, the company announced it was retracting its commitment because discussions had been prolonged and the Sri Lankan government would go back to the drawing board to renegotiate the project.

A new CANC and PC are expected to be established to redo the project proposal. Adani Green said it deliberated on the matter at its board and, while respecting Sri Lanka’s sovereign rights and decisions, had opted to withdraw from the project.

So far, the firm had invested about $5 million on pre-development work for a 484 MW wind farm in Mannar and Pooneryn and on the development of Sri Lanka’s 220 KV and 400 KV transmission network.

The withdrawal comes on the heels of sustained regulatory troubles, including outstanding environmental approval for the Mannar site and legal ambiguities owing to a pending Supreme Court case. The statement added that notwithstanding the exit from the project, Adani Green remained willing and able to consider future investment opportunities if approached by the government of Sri Lanka.