Adani Green Exits $1 Billion Sri Lanka Wind Power Project – Impact & Future Prospects.
Adani Green Energy has officially withdrawn from its $1 billion wind power and transmission project in Sri Lanka, citing prolonged negotiations and regulatory delays. Despite securing key approvals, unresolved environmental clearances in Mannar and a pending Supreme Court case led to further setbacks. While Adani Green has invested $5 million in pre-development activities, the company remains open to future opportunities in Sri Lanka’s renewable energy sector. This decision marks a significant shift in the country's sustainable energy landscape amid rising electricity demands.
Following Adani Green Energy's announcement of its withdrawal from the wind power generation and transmission project in Sri Lanka, the company's shares surged by 3% on the Mumbai Stock Exchange on Thursday, reaching ₹946.
After prolonged discussions and new government renegotiation efforts, Adani Green Energy Limited (AGEL) officially exited its $1 billion renewable wind power and electricity transmission project in Sri Lanka.
In a letter to the Sri Lanka Board of Investment, Adani Green confirmed that despite engaging in negotiations with the Ceylon Electricity Board (CEB) and government departments for two years—spanning 14 rounds of discussions—the company had secured most necessary approvals.
However, with the Sri Lankan Cabinet appointing a new negotiation committee (CANC) and a project committee (PC) to renegotiate the project, AGEL decided to withdraw from it.
The project aimed to support Sri Lanka's energy infrastructure by setting up 484 MW wind farms in Mannar and Pooneryn and expanding the 220 kV and 400 kV electricity transmission networks.
The company had already spent $5 million on pre-development activities and had made progress in obtaining permits and land acquisitions.
Nevertheless, pending ecological clearances in Mannar and a continuing Supreme Court lawsuit prolonged the project’s timeline.
Despite its withdrawal from this investment, Adani Green reaffirmed its willingness to consider future opportunities in Sri Lanka if invited by the government for new projects.
This marks a significant shift in Sri Lanka’s renewable energy landscape, as the country continues its search for sustainable energy solutions amid growing electricity demands.
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