Adani Green Energy has decided to withdraw from its $1 billion wind power project [1] in Sri Lanka, citing ongoing regulatory challenges and tariff disputes. The decision came after the company had already invested approximately $5 million in predevelopment activities for the project.
The project, which aimed to develop 484 MW of wind power plants in Mannar and Pooneryn, faced significant controversy over inflated tariffs and environmental concerns. Despite having secured most of the necessary approvals, the Sri Lankan government’s decision to reconstitute committees to renegotiate the project proposal led to Adani Green’s withdrawal.
In a statement, Adani Green expressed respect for the sovereign rights of Sri Lanka and its choices while also reaffirming its commitment to future collaboration if the government so desired. The company emphasized that it had engaged in extensive discussions with Sri Lankan officials over the past two years and had worked diligently to secure clearances and licenses.
The withdrawal marks the second setback for Adani Green’s international projects in recent months, following the cancellation of a $736 million deal in Kenya due to bribery charges against the company’s founder, Gautam Adani.
Despite the setback, Adani Green remains optimistic about its prospects in Sri Lanka and is open to future opportunities for collaboration. The company’s decision to withdraw is seen as a move to prioritize transparency and good governance in its international ventures.
Sources:
[1] Adani Green withdraws from USD-1bn wind investment in Sri Lanka