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 has withdrawn from building two wind power projects in Sri Lanka after the new government sought lower tariffs last month, in the latest setback to the Gautam Adani-led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.

Adani Green Energy Ltd told Sri Lanka’s Board of Investment on Wednesday that it would “respectfully withdraw” from the wind project following discussions with officials who indicated that fresh committees would be formed to “renegotiate the project proposal”.

Adani Green Energy has withdrawn from two wind power projects in Sri Lanka following the government's decision to renegotiate tariffs. The company was to invest USD 1 billion in the project.

The projects in question included two wind power plants to be set up in Mannar and Pooneryn at a total investment of $442 million

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 Group said on Thursday that the Adani Green Energy board has decided to withdraw from further engagement in the RE wind energy project and two transmission projects in Sri Lanka amid ongoing concerns among locals and a legal dispute over its approval and potential environmental impact.