Colombo, February 12, 2025 – LankaBIZ: In a major development, Adani Green Energy Limited (AGEL) has announced its withdrawal from the proposed $1 billion renewable wind power project in Sri Lanka. The decision comes after over two years of negotiations with the Ceylon Electricity Board (CEB) and various government bodies regarding the establishment of 484 MW wind farms in Mannar and Pooneryn, along with associated transmission infrastructure.
In a letter addressed to the Board of Investment (BOI) of Sri Lanka, Adani Green confirmed that despite significant progress— including securing most approvals and investing $5 million in pre-development activities— recent government decisions to reconstitute a Cabinet-appointed Negotiation Committee (CANC) and Project Committee (PC) for renegotiation led the company to reconsider its position.
“While we fully respect Sri Lanka’s sovereign rights and choices, we have decided to respectfully withdraw from the project,” the letter stated. The company also expressed its willingness to collaborate with the Sri Lankan government in the future if invited for other development opportunities.
The project, envisioned under a Build-Own-Operate (BOO) model, was set to enhance Sri Lanka’s renewable energy capacity while also fostering local community development through corporate social responsibility (CSR) initiatives in healthcare, education, and infrastructure.
Adani Green’s withdrawal marks a significant shift in Sri Lanka’s energy sector, raising questions about the future of large-scale foreign investments in renewable energy and the government’s approach to infrastructure project approvals.
The Sri Lankan government has yet to release an official response regarding Adani’s decision or its impact on the country’s energy strategy.
