Adani Green Energy Ltd (AGEL) has withdrawn from a nearly USD 1 billion renewable energy wind farm project in Sri Lanka. The decision comes amid mounting controversy over inflated tariffs and environmental concerns in the two regions where the project was planned—Mannar town and Pooneryn village.

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.

Adani Green Energy Ltd withdrew from building from two renewable energy wind farms in Sri Lanka, the company said in a statement on Wednesday.

As per the agreement with Sri Lanka, two wind power projects in Mannar town and Pooneryn village were to be constructed by Adani Green. Both the projects were located in the northern province of the country and were expected to cost $1 billion.

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.

Adani Green Energy has decided to withdraw its $1 billion wind farms project in Sri Lanka, citing controversy over tariffs and environmental concerns. This follows a prior setback with a canceled deal in Kenya.

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.

Adani Green Energy on Thursday said it is withdrawing from further engagements in the renewable energy (RE) wind energy project and two transmission projects in Sri Lanka.

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Adani Green Energy has withdrawn from two wind power projects worth $1 billion in Sri Lanka after the government sought to reduce the tariff. The projects, set to be completed by 2026, were scrutinized following a political change.

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.