Adani Green Energy announced on Thursday that it is withdrawing from the Renewable Energy (RE) wind power project and two transmission projects in Sri Lanka. While conveying the board's decision to step back from further engagement in these projects, the company reiterated its commitment to Sri Lanka. Adani Green stated that it remains open to future collaboration if the Sri Lankan government desires. Why the sudden reversal? In May 2024, the previous Sri Lankan government had agreed to purchase power from the Adani wind plant, at USD 0.0826 per kilowatt-hour. However, the Anura Kumara Dissanayake’s government revoked Adani Group's power purchase agreement in January 2025. Media reports on the matter claim that the new government wanted to review and renegotiate the terms to bring the cost below USD 0.06 per unit. Notably, the renegotiation procedures between both stakeholders have failed and Adani has withdrawn the planned wind power plants from Sri Lanka. Details of the project The Adani Group under this project had planned to develop two wind farms with a total capacity of 484 megawatts in Sri Lanka's Mannar and Pooneryn regions. The project was reportedly being built with an investment of USD 740 million and the project was scheduled to complete by mid-2026. Other hurdles The project encountered hurdles including opposition from environmental groups and legal challenges in the Sri Lankan Supreme Court over ecological concerns. Approved in February 2023 by Sri Lanka's Board of Investment, the project was expected to contribute significantly to Sri Lanka's renewable energy sector. However, it now appears that the company and the Sri Lankan authorities were unable to reach a final agreement, leading to Adani Green's decision to withdraw. Business Implications Following this announcement, Adani Green Energy's shares gained 2 per cent in the stock market and were trading at Rs 921 at the time of filing this report. The stock movement suggests that investors have reacted positively to the company's decision.Original Article