Adani Group to invest $442 million in bankrupt Sri Lanka

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NEW DELHI: Sri Lanka’s Board of Investment has approved two wind power plants by Adani Green Energy with a total investment of $442 million.
The announcement comes amid market rout in Adani Group stocks who have lost some $125 billion in market value after a US short seller last month alleged improper use of tax havens and stock manipulation by the apples-to-airports conglomerate.
For cash-strapped Sri Lanka, the deal is the first major foreign investment since it declared bankruptcy following an economic crisis last year.
The two plants will be supplying power to the national grid by 2025. The Sri Lankan Board of Investment statement said it will generate 1,500 to 2,000 new job opportunities.
The project comes after Sri Lanka awarded Adani a $700 million strategic port terminal project in Colombo in 2021.
Sri Lankans have been struggling with rolling powers cuts for over a year as the country struggled to generate sufficient amounts of thermal and coal power, which has pushed the government to fast track renewable energy projects.
The island nation hiked power prices by a hefty 66% last week, part of efforts to nail down a $2.9 billion bailout from the International Monetary Fund (IMF), as it struggles to find a way out of its worst financial crisis in more than seven decades.
A group of Adani officials are in Colombo to evaluate multiple projects with Sri Lanka.
“We expect the power plants to be commissioned by December 2024,” Sri Lanka energy minister Kanchana Wijesekera said said.
(With inputs from agencies)

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