Adani Green Energy Ltd. has withdrawn from building two wind power projects in Sri Lanka after the new government sought lower tariffs last month, in the latest setback to the Gautam Adani-led conglomerate’s overseas ambitions.

India's Adani Green Energy said it will withdraw from two proposed wind power projects in Sri Lanka, according to a letter sent by the company to a Sri Lankan government agency.

"Adani Green Energy has conveyed its Board's decision to respectfully withdraw from further engagement in the renewable energy (RE) wind energy project and two transmission projects in Sri Lanka," the

Adani Green Energy Ltd. (AGEL) has decided to withdraw from two planned wind power projects in Sri Lanka, citing recent developments in project negotiations. The company communicated its decision to the Sri Lankan Board of Investment (BOI) through an official letter dated 12 February, The Economic Times reported.

Ever since news of the project broke in 2022, many in Sri Lanka criticised it and claimed it had not been awarded through a transparent process.

The project approved by the Gotabaya Rajapaksa government in 2022 without a competitive tender process was under scanner for a long time

However, his Adani Group continues to be invested in a USD 700 million terminal project at the country's largest port.

Adani Green has withdrawn from a controversial $442-million renewable energy project in northern Sri Lanka amid fierce opposition from locals and a legal battle over its approval and potential environmental impact.

Adani Green Energy shares rose 3% to Rs 946 in Thursdays intraday trade after the company announced its decision to withdraw from two proposed wind power projects in Sri Lanka. The move follows the Sri Lankan government's request for lower tariffs,

The company was to invest a total of USD 1 billion in generating electricity from wind at two projects and laying transmitting lines to take it to users.

The proposed wind projects in Mannar and Pooneryn, including transmission lines would have resulted in a $1 billion investment for Sri Lanka if it had happened.