Adani Green Energy, part of Indian billionaire Gautam Adani’s Adani Group, has decided to withdraw from its wind energy project in Mannar, Sri Lanka.
Despite obtaining most approvals, the company cited delays, including unresolved environmental clearance and an ongoing Supreme Court case as reasons for the withdrawal.
The company has informed Sri Lanka’s Board of Investment (BOI) of its decision to “respectfully withdraw” while remaining open to future projects.
A new committee is set to renegotiate terms, but official statements from both Adani Group and Sri Lankan authorities are still pending.
Adani Green Energy Limited (AGEL) has officially withdrawn from its proposed $1 billion renewable wind farm and transmission project in Sri Lanka, citing prolonged discussions and new government renegotiation efforts, Indian media reported today.
In a letter to the Board of Investment of Sri Lanka, Adani Green confirmed that after two years of negotiations with the Ceylon Electricity Board (CEB) and government departments, and after 14 rounds of discussions, the company had secured most approvals. However, with a new Cabinet-appointed negotiations committee (CANC) and Project Committee (PC) being constituted to renegotiate the proposal, AGEL has decided to step away from the project.
The project aimed to establish 484 MW wind farms in Mannar and Pooneryn, alongside a 220 KV and 400 KV transmission network expansion to support Sri Lanka’s energy infrastructure. The company had already spent $5 million on pre-development activities and had made progress on clearances and land acquisitions. However, unresolved environmental approvals in Mannar and an ongoing Supreme Court case further delayed the project.
While withdrawing from this investment, Adani Green reaffirmed its willingness to consider future opportunities in Sri Lanka should the government invite the group for any 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 increasing power demands.
Sri Lanka AGEL Letter to BOI by Adaderana Online on Scribd
Media Statement on Sri Lanka Projects by AGEL by Adaderana Online on Scribd
