Adani will invest 1 billion dollars in Sri Lanka

India’s leading business conglomerate Adani Group plans to invest $1 billion in wind power projects in Sri Lanka. It is the largest single investment by a foreign group in the island nation. Moreover, this is going to be the largest power project in Sri Lanka.

According to Hindustan Times report, Adani Group will set up two wind farms with an installed capacity of 484 megawatts in addition to an investment of $740 million in Mannar town and Punerin village in Sri Lanka. Another $290 million will be invested in power transmission infrastructure.

Adani’s project is also strategically important, as it will limit China’s economic influence in the Indian Ocean. In particular, it would help India to curb China’s military, commercial or intelligence presence in northern Sri Lanka. This region is very close to the southern mainland of India.

According to sources, the project has already received the approval of the Lankan Cabinet and the process of finalizing a Purchase Agreement (PPA) is underway. After this, the Indian giant will start operations in the state.

It is said that the project will make a significant contribution to Sri Lanka’s energy security and economy. From here, one and a half million units of clean and renewable energy will be generated every year, which will meet the electricity needs of about 6 lakh households. Moreover, the project will also create employment opportunities for 1200 local residents. In fact, the project will reduce the use of fossil fuels worth $270 million, thereby reducing carbon emissions by 1.6 million tons.

Sri Lanka suffered from severe load shedding and fuel shortages during the economic crisis in 2022. The country is trying hard to come out of such a situation. Meanwhile, Sri Lanka has enacted a new law to restructure the country’s power sector and attract foreign investors in renewable energy.

The new law comes in line with the government’s commitment to a $2.9 billion bailout from the International Monetary Fund (IMF). So as to reduce losses of state-run power company Ceylon Electricity Board (CEB) and make the power sector more attractive.

Source: Hindustan Times