Adani Green Withdraws from Billion-Dollar Wind Projects in Sri Lanka

Adani Green Energy has announced its withdrawal from two wind power projects in Sri Lanka, initially estimated at $1 billion. The decision follows Sri Lankan government talks to reduce project costs and a series of reviews after allegations against Adani's founder, which the company denies.

India's Adani Green Energy has decided to exit two planned wind power endeavors in Sri Lanka, as communicated in a letter to the Sri Lankan government agency. This development comes amid ongoing discussions aimed at reducing power expenses for projects valued at approximately $1 billion.

In the letter, dated February 12, Adani Green Energy affirmed its intention to withdraw respectfully from the venture, acknowledging the sovereign rights and decisions of Sri Lanka. The company was informed about the formation of new committees to renegotiate the project proposals.

The situation arises as Sri Lanka scrutinizes Adani's local initiatives following allegations by U.S. authorities, which Adani rejects. Under initial agreements, Adani Green was set to establish wind projects in Mannar and Pooneryn. Meanwhile, the Adani Group continues work on a significant port project in Colombo, amidst Sri Lanka's urgent drive to escalate renewable energy efforts due to fuel cost challenges during its economic crisis.

(With inputs from agencies.)