Sri Lanka signed an agreement with the Indian company "Adani Green Energy" aimed at supplying energy for a period of 20 years.

The Indian company Adani Green Energy is led by billionaire Gautam Adani and received approval in February 2023 to invest $442 million in addition to developing two wind power plants. The production capacity of the plant is 484 megawatts in the town of Mannar and the village of Bonryn, which are located in the north of the country.

The company is scheduled to receive 8.26 cents per kilowatt hour. The company is partnering with the Adani Group in building a terminal project worth $700 million in Sri Lanka's largest port in Colombo.

There are some challenges facing Sri Lanka from fuel shortages during the economic crisis in 2022, and the country aims for renewable energy projects to hedge against increases in imported fuel costs.

The China Petroleum and Petrochemical Company – which is affiliated with the state – is seeking to enhance its access to the Sri Lankan market, as it is looking to build the first refinery abroad, as it fully controls a market in which India is competing with it to expand its presence there.

This step is considered a change in the company's global strategy to compensate for the slowdown in demand growth within China. The company insists on building a solar and wind energy station on vast areas in the western Indian state of Gujarat at a cost of approximately $20 billion.

It is expected to become the world's largest renewable energy plant upon completion in approximately 5 years, and will generate enough clean electricity to power 176 million Indian homes.