Colombo, February 12, 2025 – Adani Green has officially withdrawn from its $1 billion renewable energy project in northern Sri Lanka, following local opposition, legal challenges, and government renegotiations. The project, which aimed to develop 484 MW wind farms in Mannar and Pooneryn, had been under scrutiny since its approval in 2022 by the Gotabaya Rajapaksa administration.
In a letter dated February 12, 2025, Adani Green stated that after Sri Lanka’s government formed a committee to renegotiate the deal, it had decided to “respectfully withdraw” from the project, while affirming respect for Sri Lanka’s sovereignty. The company also cited “protracted discussions” with the Ceylon Electricity Board for over two years as a key reason for its decision.
The withdrawal marks a significant setback for Adani’s expansion in Sri Lanka and a political win for President Anura Kumara Dissanayake, who had vowed to cancel the project during his election campaign in 2024, though his government later showed willingness to renegotiate it.
Adani Group Continues Colombo Port Investment
Despite pulling out of the wind farm project, Adani Group remains committed to the construction of the West Container Terminal at the Colombo port, in partnership with the Sri Lanka Ports Authority (SLPA) and John Keells Holdings.
The wind energy project faced opposition due to its lack of a competitive tender process, with critics raising concerns over Adani’s “backdoor entry” into Sri Lanka’s energy sector. Environmental activists and Mannar residents had also challenged the project in the Supreme Court, citing its potential impact on a vital bird migration corridor and other ecological risks.
With Adani Green’s exit, the future of the renewable energy project remains uncertain, as Sri Lanka’s government seeks new partners while addressing public concerns over transparency and environmental impact.
