‘Adani Group’s foray into SL blending profit-taking with regional dominance’

By Ifham Nizam

The Adani Group’s foray into Sri Lanka’s renewable energy sector has ignited significant debate, blending environmental, economic, and geopolitical narratives. Some of the Group’s projects in South Asia are seen by critics as combining profit-making with regional dominance, environmental scientist Hemantha Withanage said.

Withanage was speaking to The Island Financial Review, after launching a report titled, ‘Neither Clean, Nor Green’, on three cross border energy projects in South Asia.

Withanage, a prominent environmentalist and Executive Director of the Centre for Environmental Justice, shed light on the broader implications of Adani’s presence. “These projects are not just about renewable energy; they are part of a larger strategy that prioritizes business interests while undermining local sovereignty and environmental ethics, he said.

Withanage added: “Adani’s USD 442 million renewable energy project in Sri Lanka positions the conglomerate as a dominant player in South Asia’s energy transition. By leveraging its ties with Indian policymakers and exploiting Sri Lanka’s energy crisis, Adani has effectively gained a foothold in the island nation.

“For Sri Lanka, still recovering from economic turmoil, the deal represents a potential lifeline. However, questions remain about whether this partnership offers a genuine win-win scenario or is a calculated maneuver to secure strategic advantages. This is more than just business; it’s a calculated approach to embed influence in Sri Lanka’s critical infrastructure.

“Despite the high economic stakes, the lack of transparency surrounding the deal raises red flags.

“Reports suggest that the project moved forward without adequate consultation with local communities or comprehensive environmental assessments. Critics warn that bypassing due diligence could set a dangerous precedent.

“From a business standpoint, this opacity may work in Adani’s favor by expediting project timelines and reducing initial costs. However, it risks alienating local stakeholders, potentially undermining long-term sustainability.

“While renewable energy represents a lucrative growth area, Adani’s Sri Lankan venture highlights the thin line between opportunity and exploitation. Disrupting ecosystems to accommodate large-scale energy plants could lead to reputational damage, both locally and internationally.

“With this project, Adani positions itself as a leader in green energy while sidelining fundamental sustainability principles. The balance between economic returns and environmental responsibility will ultimately shape the legacy of this venture.

“Adani’s strategy exemplifies how businesses can influence emerging markets under the guise of sustainability. For Sri Lanka, the challenge lies in ensuring that such partnerships genuinely benefit its economy, preserve sovereignty, and adhere to environmental safeguards.”