Adani Green Energy, a subsidiary of the Adani Group, announced on Thursday that Sri Lanka had approved a USD 442 million wind power project. This is the cash-strapped nation's first significant outward investment.

According to AFP, two wind farms will be built in the island's north by Adani Green Energy, a division of the Gautam Adani business conglomerate.

The BOI stated in a statement that "the total investment would exceed USD 442 million and the two plants will be producing power to the national grid by 2025." In 2021, Sri Lanka awarded Adani a contract for a $700 million major port terminal project in Colombo.

At Colombo Harbour, the only deep-sea container port between Dubai and Singapore, the company is constructing a 1.4-kilometer, 20-meter deep jetty immediately adjacent to a Chinese-operated terminal.

Kanchana Wijesekera, the energy minister, reported that he met with Adani representatives on Wednesday in Colombo to finalise the wind farm deal.

By December 2024, "we anticipate the power plants to be operational," he stated.

This occurs at a time when the Adani Group is under fire following accusations of accounting fraud and pricing manipulation from a US-based short-selling firm called Hindenburg Research.

The shares of the Adani Group have lost 60% of their value since Hindenburg's shocking report was published on January 24.

Adani Group, meanwhile, has refuted each and every accusation. In 2019, a Chinese company was given a $12 million contract from the Asian Development Bank to construct three wind farms on islands in the Palk Strait, which separates India and Sri Lanka. However, New Delhi objected to the proposal, and it was canceled.

China accounts for 52% of bilateral credit and is Sri Lanka's largest government lender. For Colombo to receive a $2.9 billion rescue from the International Monetary Fund, Beijing must provide financial guarantees.

Hindenburg impact: Adani no longer among world’s 25 richest

Adani Ports repays Rs1,500 cr to SBI MF, Aditya Birla Sun Life

Bank of Baroda is willing to keep more lending to Adani Group