Adani Green Energy Ltd (AGEL) officially announced on Thursday that it has withdrawn from two planned wind power projects in Sri Lanka citing recent developments in project negotiations.
The company has communicated its decision to withdraw from the project to the Sri Lankan Board of Investment (BOI) through an official letter dated February 12, 2025. “Adani Green Energy Ltd has conveyed its board’s decision to respectfully withdraw from further engagement in the wind energy project and two transmission projects in Sri Lanka. However, we remain committed to Sri Lanka and are open to future collaboration if the Government of Sri Lanka so desires,” according to a release issued by the Adani Group.
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Adani Green Energy has been in discussions with various Sri Lankan government departments for more than two years regarding the establishment of 484 MW renewable energy wind farms at Mannar and Pooneryn, in Northern Sri Lanka, which were estimated to cost US $1 billion. The project also includes an associated transmission system, as well as the expansion of 220 KV and 400 KV transmission networks to transport electricity from Northern Sri Lanka to electricity consumption centres in Southern Sri Lanka.
The project was approved by Sri Lanka’s Board of Investment in early 2023. An agreement was also signed for a power supply tariff of 8.26 cents per kWh for 20 years. However, in 2024, environmentalists filed a public interest litigation against the project, challenging the terms of the power procurement agreement. They also argued that the tariff would result in losses for Sri Lanka and place a financial burden on its consumers.
After this development in January 2025, the Sri Lankan government initiated talks with the Adani Group to renegotiate electricity tariff pricing from the wind energy projects.
In its letter to the chairman of the Sri Lankan Board of Investment (BOI) the Adani Group stated that a new cabinet-appointed negotiations committee and project committee are expected to renegotiate the project proposal afresh.
After Adani Green Energy’s board reviewed the latest situation, it opted to exit the wind energy project stating, “The company fully respects the sovereign rights of Sri Lanka and its choices. It would respectfully withdraw from the said project”.
