Adani withdraws from $1 bn Lanka power project

Adani Green Energy, the renewable arm of billionaire Gautam Adani’s conglomerate, has withdrawn from two proposed wind power projects in Sri Lanka, following the Island nation’s new government deciding to renegotiate tariffs.

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“Adani Green Energy has conveyed its Board’s decision to respectfully withdraw from further engagement in the renewable energy (RE) wind energy project and two transmission projects in Sri Lanka,” the firm said in a statement.

The company was to invest a total of USD 1 billion in generating electricity from wind at two projects and laying transmitting lines to take it to users. The plan came under the scrutiny of the newly elected administration under President Anura Kumara Dissanayake who wanted to reduce electricity costs.

“However, we remain committed to Sri Lanka and are open to future collaboration if the government of Sri Lanka so desires,” AGEL said.

Adani group, however, continues to be invested in a USD 700 million terminal project at Sri Lanka’s largest port in Colombo.