News Brief
Adani Group Withdraws From Wind Power Projects In Sri Lanka Amid Negotiation Hurdles: Report
Gautam Adani
Adani Green Energy Ltd. (AGEL) has decided to withdraw from two planned wind power projects in Sri Lanka, citing recent developments in project negotiations.
The company communicated its decision to the Sri Lankan Board of Investment (BOI) through an official letter dated 12 February, The Economic Times reported.
Adani Green’s Statement on Withdrawal
"Adani Green Energy has conveyed its Board's decision to respectfully withdraw from further engagement in the RE wind energy project and two transmission projects in Sri Lanka. However, we remain committed to Sri Lanka and are open to future collaboration if the Government of Sri Lanka so desires." a spokesperson from the Adani Group was quoted as saying by The Economic Times.
The two wind power projects, planned for Mannar town and Pooneryn village in Sri Lanka's Northern Province, were estimated to cost $1 billion.
Sri Lanka’s Review of the Project
Last month, the Sri Lankan government initiated talks with Adani Group to renegotiate electricity pricing from the projects.
Given these developments, Adani Green Energy’s Board reviewed the situation and opted to exit the project, stating: "While the company fully respects the sovereign rights of Sri Lanka and its choices, it would respectfully withdraw from the said project."
Adani’s Other Investments in Sri Lanka
Despite this withdrawal, Adani Group remains engaged in Sri Lanka’s infrastructure sector.
The conglomerate is developing a $700 million terminal at Colombo’s largest port, a key strategic investment.
Sri Lanka began reviewing Adani Group’s local projects after US authorities accused Gautam Adani and other company executives of being involved in a bribery scheme to secure Indian power supply contracts in November 2024. Adani has denied all allegations.
