Adani Group withdraws from Sri Lanka wind project amid mounting scrutiny

Adani Group withdraws from Sri Lanka wind project amid mounting scrutiny

The Adani Group has withdrawn from a 484 megawatt (MW) wind project in northern Sri Lanka after the government in Colombo allegedly moved to renegotiate the terms of the project.

Adani Green Energy Ltd told Sri Lanka’s Board of Investment on Wednesday that it would “respectfully withdraw” from the wind project following discussions with officials who indicated that fresh committees would be formed to “renegotiate the project proposal”.

The wind project has been under intense scrutiny since the election of Sri Lanka’s President Anura Kumara Dissanayake in September last year, after he promised to cancel the “corrupt” project in the runup to the elections.

“Our executives recently had discussions with CEB (Ceylon Electricity Board) officials as also with Ministry officials at Colombo. It was learnt that another Cabinet appointed negotiations committee (CANC) and Project Committee (PC) would be constituted to renegotiate the project proposal,” Adani Green wrote in a letter to Arjuna Herath, Chairman of the Board of Investment.

“This aspect was deliberated at the Board of our company and it was decided that while the company fully respects the sovereign rights of Sri Lanka and it’s choices, it would respectfully withdraw from the said project,” the letter said.

The project has also drawn criticism for its potential impact on a nearby bird corridor and on local fishing communities. Adani Green spent a total of $5 million in pre-developmental activities, including obtaining clearances and arranging for land.