Sri Lanka Sri Lanka, Adani Group retires from wind megaprojects

The agreement, reached with Wickremesinghe last May, provided for the construction of two wind farms in Mannar and the people of Pooneryn. The Dissanayake government retracted to reduce costs due to the crisis and after the Indian billionaire was accused of fraud. Ecologists are glad: “Risks are avoided for fishermen and migratory birds.”

Colombo (Asianews) – The Sri Lanka Investment Council (BOI) -organism that promotes investments in southern Asia since 1978- has been notified by Adani Green Energy Limited of its decision to “respect respectfully” from the project that supposed the Construction of two wind farms in the country. Last May, the Rama of Renewable Energies of the Indian multinational conglomerate Adani Group had in fact signed an agreement with the interim president Ranil Wickremesinghe. The two wind projects and the transmission facilities – in the city of Mannar and the people of Pooneryn – would have meant an investment of 442 million dollars.

The reverse occurred after the government initiated conversations with the Adani group in January to reduce the cost of energy in the projects of the anterior figure of USD 0.08 at about 0.06 USD or less per kilowatt-hora (kWh ). According to an Adani spokesman, the group retired from the projects because “they were not sustainable.” «The question was discussed in the Council. It was decided that, fully respecting the sovereign rights and decisions of Sri Lanka, the company would be well withdrawn, ”says the letter sent this week to the Investment Board.

Also in the statement, Adani Green Energy Limited states that it is still present in Sri Lanka and that it remains open to future collaborations if the Colombo government wishes. The Adani group also participates in the construction of a port project of 700 million dollars in the largest naval dock in the country, in Colombo. The new Dissanayake government had reviewed the plans with the multinational after the US authorities accused in November the Founding billionaire Gautam Adani and other executives to participate in a fraud consisting of the payment of bribes to obtain solar energy contracts.

Sri Lanka, who faces financial problems and suffers serious cuts of electricity and fuel shortage due to the economic crisis of 2022, is accelerating the adoption of renewable energy to protect itself from the increase in imported fuel expenses. The Adani group was the first foreign investor that arrived in Sri Lanka after the financial crisis. «Sri Lanka faces a serious energy crisis today. The only way to find a solution to this crisis is wind farms and hydroelectric plants. Adani’s project is just one of them, ”Ecologist Saewa Chamikara told Asianews.

Sri Lanka is not yet prepared as a country to meet our energy needs and we have no orientation to develop a policy on the energy production process and energy efficacy, ”he added. Highlighting how at the same time these are projects with a strong environmental impact. «On the island of Mannar it has been shown how the construction of such a central will affect the fishing industry, with important repercussions for the inhabitants of the Island of Mannar. Based on these aspects, the company retires accordingly of the project, ”the ecologist continued.

But the pressure exerted by environmental groups was not the only thing that led the Adani group to back down. It was the result of the strong pressure of disparate groups. «This shows that there must be a clear speech on how to carry out development in our country. The whole country must work together without forgetting that it is only a temporary victory, ”said Sajewa Chamikara.

Hemantha Withanage, president of the Center for Environmental Justice (CEJ), also said that it was a significant achievement for the citizens of the country aware of the environment. «The project is a risk to migratory birds and can aggravate the damage caused by floods to the local community. This choice shows that we should not support harmful projects for the environment and destructive for society, even if they carry the renewable label ».

“Whatever the reasons adduced by the Adani group to withdraw the project, there are several solid judicial cases that indicate the environmental and social benefits of such a decision,” he continued, “other destructive projects of mining and wind energy on the island of Mannar would put in danger population protection. The inhabitants of Mannar already suffer floods due to existing development projects, including wind energy and road construction, ”said Hemantha Withanage to Asianews.