Adani Market Cap Recovery by 2028
MetaculusNOV 28 2023
India: Adani Exits Sri Lanka's $442M Wind Power Projects
Above: Chairman of Adani Group, Gautam Adani, in Jaipur, India, on Nov. 30, 2024. Image copyright: Vishal Bhatnagar/Contributor/NurPhoto via Getty Images
The Spin
Narrative A
The Adani Group withdrew from the projects after multiple rounds of negotiations and significant investment in predevelopment activities as they were financially unviable amid unresolved environmental clearance. While withdrawing from this investment, the company remains committed to Sri Lanka and is open to future collaboration should the government invite the group to participate in any new projects.
Narrative B
Though Adani's exit could impact Sri Lanka's efforts to fast-track renewable energy projects, the government's review was necessary to secure better terms for the country and address concerns about the high tariff rates and environmental impact. The renegotiation attempt aimed to protect national interests and ensure more favorable energy rates for the population.