India’s Adani withdraws from troubled $442m Sri Lanka wind power projects

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The Indian conglomerate Adani Group has withdrawn from a troubled $442m wind power project in Sri Lanka after the island nation’s government sought to renegotiate the deal.

Sri Lanka’s Board of Investment (BOI) announced on Thursday it had received a letter from Adani Green Energy Limited saying it had decided to “respectfully withdraw” from the project, which involved building two wind power plants along with two transmission projects.

ri Lanka’s new government has been reviewing the Adani projects after US authorities accused billionaire founder Gautam Adani and other executives in November of being part of a scheme to pay bribes to secure Indian power supply deals, charges the firm has denied.

Last month, the government said it had begun talks with the Adani Group to trim the cost of power in the projects from an earlier figure of $0.08 to about $0.06 or less per kilowatt-hour (kWh).

The project was signed under the interim President Ranil Wickremesinghe in May 2024.

An Adani spokesperson explained that the group withdrew from the projects as they were “financially unviable”.