India's Adani Green Energy has told Sri Lanka it will withdraw from two proposed wind power projects, the company said on Thursday, two weeks after Colombo said it was seeking to lower the cost of the power generated.

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 has withdrawn from building two wind power projects in Sri Lanka after the new government sought lower tariffs last month, in the latest setback to the Gautam Adani-led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 Group has decided to pull out of its $440mn wind power projects in Sri Lanka after the new government in Colombo launched a review of the tariffs agreed for the deal.

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.

Energy giant, Adani has decided to withdraw from its proposed $ 1 billion wind power project based on the build-own-operate (BOO) model in Mannar and Pooneryn. The move follows the President Anura Kumara Dissanayake administration deciding to renegotiate the previously approved project for a lower cost.

Adani Green has been in discussions with various Sri Lankan government departments for over two years regarding the establishment of 484 MW Renewable Energy Wind Farms at Mannar and Pooneryn

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. The Sri Lankan government said last month it has started talks with the Adani Group to lower the cost of power from the projects estimated to cost a total of $1 billion.