A. Jathindra
Fresh tenders are expected to be called for the two renewable energy projects that were previously offered to India’s Adani Group. In the Sri Lankan context, it is not surprising that projects with Indian funding in the north-east often face opposition under the banner of environmental concerns, while Chinese investments rarely encounter the same level of scrutiny.
For example, the Indian-funded coal power plant planned for Sampur, Trincomalee, in the Eastern Province was abandoned due to environmental objections. India, respecting public sentiment, pivoted to a solar alternative. In contrast, the Chinese-backed coal power plant in Nuraisoali was completed without major resistance.
This disparity has raised questions about the authenticity of environmental concerns cited against Indian investment projects in Sri Lanka’s north and east. With the government unable to advance the wind power project, Adani Green Energy announced its withdrawal in February 2025. The project involved a US$442 million investment to generate 484 megawatts of power under a 20-year power purchase agreement in Mannar and Puneri—making it the largest investment in the Northern Province since the end of the civil war. Originally, the project was tabled under the Gotabaya Rajapaksa administration in 2022, and on 7 March 2022, the Cabinet approved entering into a memorandum of understanding (MoU) with Adani Green Energy Limited of India.
The project’s implementation faced setbacks, officially attributed to environmental and unit cost concerns, and became mired in controversy during Gotabaya Rajapaksa’s tenure. When the project idea emerged as a political flashpoint in 2022, M.M.C. Ferdinando, Chairman of the Sri Lanka Ceylon Electricity Board (CEB), alleged before a parliamentary panel that Indian Prime Minister Narendra Modi had “pressured” then-President Rajapaksa to award the project to Adani. President Rajapaksa, however, categorically denied the chairman’s statement. Amid this controversy, several petitioners also challenged the project’s approval in the Sri Lankan Supreme Court.
Such claims underscored the perception that the project was primarily intended to serve India’s interests. Subsequently, President Ranil Wickremesinghe attempted to revive the initiative. However, the situation shifted after Anura Kumara Dissanayake, leader of the JVP, won the presidential election. During his campaign, Anura Kumara pledged to halt the project if elected. It was in this context that the Adani Group withdrew from the wind farm project—a setback for Sri Lanka’s economic prospects.
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