Adani Group investment worth $442 million approved by Sri Lanka

Adani Group has been given the green light by Sri Lanka’s investment promotion authority to establish two renewable energy facilities in the country’s northern and eastern regions. The Mannar and Pooneryn wind power plants will have capacities of 250 MW and 100 MW, respectively, and require a combined investment of $442 million. The projects are expected to be operational by 2025 and are aimed at bolstering Sri Lanka’s energy capacity. 

The Adani Group’s recent meeting with the Minister of Energy marks the first formal dialogue since US-based Hindenburg Research made allegations against the Indian conglomerate, which it has categorically denied. The Adani Group’s venture into the country’s energy sector complements its previous investments in the port of Colombo’s Western container terminal. Gautam Adani, the group’s chief, met with former Sri Lankan President Gotabaya Rajapaksa in October 2021 to discuss the company’s investment plans in the country following the Colombo port deal.

This deal represents Sri Lanka’s first major foreign investment since it declared bankruptcy following an economic crisis last year. According to a statement from the Sri Lankan Board of Investment, the project will create between 1,500 and 2,000 new jobs. The announcement comes as Sri Lanka is grappling with rolling power outages, resulting from the country’s struggle to generate adequate amounts of thermal and coal power. This has spurred the government to expedite the development of renewable energy projects. In an effort to secure a $2.9 billion bailout from the International Monetary Fund (IMF) as it struggles to navigate its worst financial crisis in over seven decades, the island nation has increased power prices by a significant 66% as of last week.

FAQs:

Q1: What is the capacity of the Mannar and Pooneryn wind power plants?

The Mannar and Pooneryn wind power plants will have capacities of 250 MW and 100 MW, respectively.

Q2: How many new jobs will the projects create?

According to a statement from the Sri Lankan Board of Investment, the projects will create between 1,500 and 2,000 new jobs.

Also Read: Committed to ensuring market integrity, says SEBI; refers to ‘unusual price movement’ in Adani group stocks

Latest Business News