Adani Green drops Northern Sri Lanka wind farm project amid controversy

Adani Green has pulled out of a contentious renewable energy project in northern Sri Lanka, citing prolonged negotiations and local opposition, according to a statement issued yesterday (12 February 2025).  

The project, which involved building 484 MW wind farms in Mannar and Pooneryn with an estimated investment of nearly $1 billion, faced resistance from environmental activists and local communities over potential ecological impacts. It was also mired in controversy due to its approval without a competitive bidding process under the Gotabaya Rajapaksa administration in 2022, reports The Hindu.

In a letter dated 12 February 2025, Adani Green said the decision followed the Sri Lankan government's appointment of a committee to renegotiate the project. The company said it chose to "respectfully withdraw from the said project" while "fully respecting" Sri Lanka's sovereignty and its decisions. The letter also mentioned "protracted discussions" with the Ceylon Electricity Board over the past two years.  

The move is seen as a setback for Adani Group's expansion efforts in the region and a political victory for Sri Lankan President Anura Kumara Dissanayake, who had promised to scrap the "corrupt" project before his election in September 2024. However, his administration later showed willingness to reconsider the project.  

Despite the withdrawal from the wind energy venture, the Adani Group continues its involvement in Sri Lanka with the construction of the West Container Terminal at Colombo Port, in partnership with the Sri Lanka Ports Authority (SLPA) and John Keells Holdings.  

The renewable energy project faced strong criticism from opposition parties and local environmentalists, who raised concerns about the company's alleged "backdoor entry" into Sri Lanka's energy sector and the potential threat to a crucial bird migration route. Legal challenges were also filed in the Supreme Court, further complicating the project's future.