Days after the company announced it would pull out of a major wind energy project on the island, top executives of Adani Group are set to resume talks with the Sri Lankan government next week.
Billionaire Gautam Adani-led Adani Green Energy is in fresh talks to revive two 484 megawatt (MW) renewable energy wind farms in Mannar and Poonarin, sources familiar with the matter told The Tribune. The project, which also includes a 220 kilovolt (kV) and 400 kV transmission network to supply electricity to the southern parts of Sri Lanka, has been in the works for over two years.
The Sri Lankan government had been pressuring Adani Green Energy to reduce its tariff rates, a key milestone in the talks. The group has pledged to invest $442 million in the project, and has already spent $5 million on pre-development work.
On Wednesday, the Adani Group officially announced its decision to withdraw from the project. In a statement, the company said: “We respectfully withdraw from the project. While we bow our heads, we reaffirm that we are always ready to take on any development opportunity if the Sri Lankan government ever considers engaging with the Adani Group. We would like to express our best wishes and gratitude to the Sri Lankan government for providing us with the opportunity to engage.”
Before withdrawing, the Adani Group had held more than 14 rounds of talks with Sri Lankan authorities and secured approval for a 20-year power purchase agreement. However, the project had been stalled due to environmental clearance for the Mannar site and a related Supreme Court case.
Adani’s withdrawal has caused concern in Sri Lanka as it marks the second major foreign investment exit in recent months. In December 2024, Australian company United Petroleum also pulled out of its project in the country.
With new discussions, both sides are expected to explore ways to keep the wind energy project alive that could address tariff issues and regulatory hurdles.
