Adani Green Energy has sought reimbursement for its initial investment after withdrawing from two wind power projects in Sri Lanka, valued at $442 million.
This decision came after the newly elected National People’s Power (NPP) government in Sri Lanka sought to renegotiate the power purchase agreement, aiming for a lower cost of power than what was agreed upon by the previous administration.
⚡ Project Timeline & Financials
May 2024: Sri Lanka’s previous administration signed a 20‑year Power Purchase Agreement (PPA) with Adani Green Energy for two wind farms (Mannar & Pooneryn), totalling 484 MW, at a tariff of 8.26 ¢/kWh.
Jan 2025: The new government under President Dissanayake revoked the agreed tariff and set up committees to renegotiate, targeting below 6 ¢/kWh.
Feb 2025: Adani announced its withdrawal from the project after having invested ~US $5 million in pre-development costs.
🛑 Regarding “Reimbursement”
No formal reimbursement deal has been reported. Adani invested ~$5 million in preparatory studies but did not proceed. They exited and expressed openness to renegotiate, not to refund expenditures.
Sri Lankan officials haven’t announced any plan or demand for reimbursement. Their priority has been restructuring tariff terms—or seeking new investors—not recovering sunk costs .
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🔍 Current Status:
The government remains open to renewing the project under acceptable tariffs (~5–7 ¢/kWh), and discussions continue.
Environmental and legal petitions were dropped after Adani’s withdrawal, with no claims for damages or reimbursement noted.
Adani reassured it remains ready to invest up to USD 1 billion in Sri Lanka’s renewables if conditions align.
✅ Bottom Line
No reimbursement agreement has been publicized.
Adani’s exit absorbed ~USD 5 million in pre-development costs—no refund.
Sri Lanka is now focused on finding a viable tariff and potentially partnering with Adani or another investor.
If your inquiry concerns recouping losses or compensation, there’s currently no framework or public negotiations on that front.
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