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We hail the Sri Lankan Government for the strict measures that 'forced' Adani to cancel Wind Power Project

February 14, 2025

We hail the Sri Lankan Government for the strict measures that 'forced' Adani to cancel Wind Power Project

Photo: Collected

We, the members of the South Asia Just Transition Alliance (SAJTA), express our happiness and thank the Sri Lankan government for taking strict measures so that Adani Group had to cancel its 482MW controversial wind power project from Mannar and Pooneryn in the Northern Province of Sri Lanka.

Adani Green Energy Limited (AGEL), a subsidiary of Adani Group, signed a Power Purchase Agreement (PPA) in May 2024 to build and operate the wind power project for 20 years. Local people and environmental activists vehemently opposed the project due to its adverse environmental and social impacts. The Centre for Environmental Justice (CEJ), the Wildlife and Nature Protection Society (WNPS), and two other groups of concerned environmental experts filed cases in the Supreme Court of Sri Lanka challenging the Environmental Impact Assessment (EIA) and expressing concerns about the energy sovereignty and severe impact on migratory birds.

Our study, ‘Neither Clean Nor Green’, jointly conducted with CEJ, found that 15 million migratory birds take refuge in Sri Lanka's coastal zones. We also found that faulty power plant design may increase floods and affect the 72,000 inhabitants of Mannar Island. The project might also affect the economy of Sri Lanka. According to the PPA, Adani was to supply electricity at USD 0.0826 per kWh, 192% higher than the tariff for Indian wind power (USD 0.043).

The Sri Lankan government started reviewing the project in response to criticism, protests and a court case. Finally, the Ministry of Energy revoked the agreement and formed a committee to review the entire project again. Meeting the hurdle, AGEL informed the Sri Lankan Board of Investment on 12 February 2025 that it would withdraw the project.

Hemantha Withanage, Chairperson of the Centre for Environmental Justice, stated that this is a significant achievement for environmentally concerned citizens of the country. The project threatens migratory birds and could increase flood damage to the local population. This decision conveys that we should not entertain environmentally harmful and socially destructive projects, even if they carry a renewable label.

Quoting the Sri Lankan example, Hasan Mehedi, Chief Executive of the Coastal Livelihood and Environmental Action Network (CLEAN), said, “The Bangladesh Government should take similar actions on Adani’s Godda coal power plant as the unsolicited agreement signed by the previous government contained many flaws.” He mentioned that Adani violated the agreement by hiding the tax exemption information in India.

Expressing pleasure at the cancellation, Vidya Dinker, Coordinator of Growthwatch in India, said, “All the cross-border projects in South Asia, including Godda Coal Power Plant in India and Sunkoshi Hydropower Plant in Nepal, must undergo a robust investigation to protect human rights, livelihoods, environment and economy of our communities and indeed our countries themselves. Until then, these contentious projects must be paused”. She urged South Asian policymakers to ensure a just energy transition in the region.

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