Adani Green Pulls Plug on Multi-Million Dollar Wind Projects in Sri Lanka

Adani Green Energy has decided to withdraw from a significant wind power project and related transmission initiatives in Sri Lanka. Despite a previous agreement, a change in government led to renegotiation complications, ultimately causing Adani to step back. However, they remain open to future collaborations.

In a significant strategic move, Adani Green Energy announced its decision to withdraw from a planned renewable energy wind power project and two associated transmission projects in Sri Lanka. Despite the withdrawal, Adani Green has stated that it remains committed to Sri Lanka and willing to engage in future collaborations, should the government express interest.

The decision follows an official statement from the Adani Group, highlighting their withdrawal from continued engagement due to unmet conditions with the current Sri Lankan government. This decision comes after the government, which came into power in January 2025, revoked a previous power purchase agreement and sought renegotiations to lower costs, which reportedly did not meet the expected terms.

Initially, Adani Group had planned a major investment of USD 740 million to develop two wind farms in the Mannar and Pooneryn regions, boasting a cumulative capacity of 484 megawatts. These projects were aimed at boosting Sri Lanka's renewable energy sector but faced environmental opposition and legal challenges. Adani Green Energy shares have since risen by 2%, reflecting investor approval of their strategic withdrawal.

(With inputs from agencies.)