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 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.

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”.

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.

The conglomerate led by billionaire Indian tycoon Gautam Adani has walked away from a renewable energy project

Adani Green Energy has withdrawn from two wind power projects worth $1 billion in Sri Lanka after the government sought to reduce the tariff.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.

"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