Adani Green Energy Shares Surge As Rights Petitions Against Sri Lanka Projects Withdrawn
The shares of Adani Green Energy became a market focus on Wednesday when five petitions for fundamental rights against its Sri Lankan wind energy projects disappeared. Five legal petitions emerged in 2024 as officials from the previous Sri Lankan cabinet approved the project back in May of the previous year.
Multiple petitions submitted to the authorities focused on environmental safety risks and project secrecy issues. The petitions against Adani Green Energy’s wind energy projects were dismissed by the Attorney General as he supported the company’s decision to cancel its wind energy projects while notifying Board of Investment.
After evaluating that it would no longer proceed with the renewable wind energy projects in Mannar and Pooneryn, Adani Green Energy stood as a subsidiary under the Indian conglomerate Adani Group.
The reevaluation of the project by President Anura Kumar Dissanayake and the new Sri Lankan government led to the decision to review the power purchase agreement.
The former Sri Lankan government, under previous leadership, signed the power purchase agreement how at a price of eight cents per unit. The new government officials assessed this rate as exorbitant hence they worked to establish a price lower than six cents. The renegotiation of the agreement and the project terms took place because of this assessment.
After the September presidential elections, the National People’s Power (NPP) government obtained power and promised to end the project throughout its electoral campaign.
In December, the cabinet that had recently taken power made a decision to restructure the pricing conditions, which resulted in changes to the project’s continuation status.
The fundamental rights petitions were removed when Adani Green Energy decided to withdraw its project investments. The Sri Lankan wind energy sector no longer interests investors since Adani Green Energy exited it, which redirects attention to its renewable energy initiatives across India and international arenas.
The removal of petitions, along with the project cancellation, exposes the business challenges that foreign investments encounter when operating within Sri Lanka’s energy market.
Adani Green Energy maintains its dedication to building its renewable energy holdings, specifically within solar and wind power, to establish itself as a worldwide leader in sustainable electricity generation.
Withdrawal From Projects
In February 2025, Adani Green Energy announced its withdrawal from the Mannar and Pooneryn wind energy projects. The decision was attributed to prolonged delays in securing clearances and renegotiation committees formed by Sri Lanka’s government.
Despite spending $5 million on pre-development activities such as land acquisition and planning transmission systems, the company opted to step back while remaining open to future collaborations with Sri Lanka.