The Adani Group, founded by billionaire Gautam Adani, has decided to pull out of a $442 million wind power project in Sri Lanka. This decision follows the Sri Lankan government’s request to renegotiate the deal.
In a letter to the Board of Investment (BOI), Adani Green Energy Limited confirmed its decision to withdraw from the project, which aimed to establish two wind power plants along with two transmission lines. The Sri Lankan government has been reassessing these projects after US authorities implicated Adani and other executives in a bribery scheme related to Indian power supply deals—a claim the company denies.
Recently, the government attempted to reduce the cost of power from these projects from $0.08 to around $0.06 per kilowatt-hour. The original agreement was made under interim President Ranil Wickremesinghe in May 2024.
An Adani spokesperson mentioned that the company found the projects to be “financially unviable.” They indicated a willingness to respect Sri Lanka’s decisions but determined it best to withdraw from the negotiations. “While we appreciate Sri Lanka’s sovereign rights, we feel it necessary to step back,” the spokesperson wrote in a letter seen by Reuters.
In a fresh statement, Adani Green expressed their commitment to Sri Lanka, stating they are open to future opportunities if the government wishes to work together. The company is also involved in a separate $700 million terminal project at Colombo’s main port.
Previously, the US International Development Finance Corporation had pledged $553 million for the West Container Terminal in Colombo but later retracted its support. As Sri Lanka faces economic challenges, including power shortages and high fuel costs, the country has been eager to develop renewable energy to alleviate its energy crisis. Adani was notably the first foreign investor to engage in Sri Lanka following the recent financial difficulties.
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