Adani Green Withdraws from $1 Billion Wind Farm Project in Sri Lanka

Colombo, February 12, 2025 — Adani Green Energy Limited (AGEL) has announced its withdrawal from the proposed 484 MW renewable energy wind farm projects at Mannar and Pooneryn in Sri Lanka. The decision was communicated through an official letter addressed to Mr. Arjuna Herath, Chairman of the Board of Investment (BOI) in Sri Lanka.

The project, which aimed to invest around USD 1 billion, included the construction of wind farms and a transmission system to connect to the national grid. Adani Green had been in discussions with the Ceylon Electricity Board (CEB) and other government departments for over two years. The initiative was expected to enhance Sri Lanka's renewable energy capacity and bring significant Corporate Social Responsibility (CSR) benefits to local communities in healthcare, education, and infrastructure development.

According to the letter, Adani Green received approval on a 20-year fixed tariff for the Power Purchase Agreement and secured almost all necessary clearances, except for environmental approval for the Mannar site, which is currently tied to a Supreme Court case. The company has reportedly spent approximately USD 5 million on pre-development activities for the project.

However, during recent discussions with CEB and Ministry officials in Colombo, it was learned that a new Cabinet-Appointed Negotiation Committee (CANC) and Project Committee (PC) would be formed to renegotiate the project proposal. Following these developments, Adani Green decided to withdraw, citing respect for Sri Lanka’s sovereign rights and choices.

Despite its withdrawal, Adani Green reaffirmed its commitment to future collaborations with the Sri Lankan government, expressing readiness to participate in new development opportunities if invited.

The decision marks the end of one of Sri Lanka's most ambitious renewable energy projects, leaving the door open for other investors to step in and fulfill the country’s renewable energy goals.