Adani Green Energy withdrew from its wind energy project and two transmission projects in Sri Lanka due to strong local resistance and growing scrutiny over their approval by the previous government.

The decision is being viewed as a political win for Sri Lankan President Anura Kumara Dissanayake, who had pledged to revoke the agreement during his election campaign.

On Thursday, an Adani spokesman stated, “Adani Green Energy has conveyed its Board’s decision to respectfully withdraw from further engagement in the RE wind energy project and two transmission projects in Sri Lanka. However, we remain committed to Sri Lanka and are open to future collaboration if the Government of Sri Lanka so desires.”

Under President Dissanayake’s leadership, Sri Lanka’s Cabinet has decided to cancel the power purchase agreement with the Adani Group. Officials from the Ministry of Energy confirmed that the government had terminated the deal and established a committee to reassess the entire project.

The wind power project, aimed at producing 484 MW in the coastal regions of Mannar and Pooneryn, was initially approved in May 2024 during the tenure of former President Ranil Wickremesinghe.

The agreement had set the electricity purchase rate at USD 0.0826 per kWh, notably higher than the rates proposed by local bidders. This price difference led to strong opposition and criticism from local stakeholders.

Several environmental organisations, including the Wildlife and Nature Protection Society and the Environmental Foundation, strongly opposed the wind energy project. They raised concerns about its potential impact on migratory birds and criticised the insufficient Environmental Impact Assessment (EIA). Local communities, led by the Bishop of Mannar, also protested, fearing that the project could disrupt local industries and endanger livelihoods.

Adani Group’s decision to withdraw from the project comes as Sri Lanka reassesses its operations in the country. This follows the U.S. Department of Justice indicting Adani Group chairman Gautam Adani and seven others on bribery charges in November last year. The Adani Group has denied these accusations, dismissing them as baseless.

Despite stepping back from the wind energy and transmission projects, Adani Group continues its work on the West Container Terminal at Colombo Port. The project is being developed with the Sri Lanka Ports Authority (SLPA) and John Keells Holdings.

A spokesman for the Adani Group clarified that the project had not been officially cancelled, describing the government's decision as part of a "standard review process." The company reaffirmed its commitment to investing $1 billion in Sri Lanka's green energy sector to promote renewable energy development and support economic growth.