India’s Adani Green Energy will not receive any compensation for exiting Sri Lanka’s Mannar wind power project, according to the Ministry of Energy. However, the government is preparing to reimburse Rs. 300–500 million for preliminary expenses incurred. The move follows Adani’s withdrawal from two renewable energy projects after disagreements with the NPP government over pricing—marking a significant shift in Sri Lanka’s energy diplomacy.
A top official from Sri Lanka’s Ministry of Energy confirmed that India’s Adani Green Energy will not receive any compensation following its withdrawal from the Mannar wind power project. However, the government is prepared to reimburse the company between Rs. 300 million and Rs. 500 million for initial costs incurred during the early stages of the project.
The official emphasized that this payment is strictly a reimbursement, not a compensation payout. The funds will cover only the startup expenses Adani invested prior to its exit.
According to a report by the Daily Mirror, citing high-ranking government sources, the reimbursement decision comes in the wake of Adani Green Energy’s formal withdrawal from two major renewable energy projects in Sri Lanka.
The Indian energy giant reportedly pulled out of the projects due to pricing disputes with the National People’s Power (NPP) government. Adani’s decision to abandon the ventures marks a significant blow to India-Sri Lanka energy collaboration, especially as the Mannar wind project was once touted as a symbol of regional green energy cooperation.
In May this year, Adani Green Energy submitted a letter to the Sri Lankan authorities, officially requesting the reimbursement of its preliminary investment costs. The request included expenses related to feasibility studies, planning, and early-stage project development.
The Ministry of Energy reiterated that while Adani will not receive any compensation for abandoning the projects, the Sri Lankan government is willing to act in good faith by covering legitimate pre-operational costs. The reimbursement is expected to be finalized in the coming weeks, subject to standard administrative and legal processes.
This development adds another layer of complexity to Sri Lanka’s shifting energy strategy, which has seen increased scrutiny over foreign involvement, pricing disputes, and the balance between national sovereignty and investment attractiveness.
