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.

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.

For the Adani Group, there is one major good news from abroad, after the string of bad news beginning with the 2023 Hindenburg Report on Adani’s round tripping of capital, and the indictment in a US court in 2024: Adani’s first major investment in Sri Lanka, the Colombo Port West Container Terminal is well on course for a soft launch in February.

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 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Adani Green Energy has withdrawn from two wind power projects in Sri Lanka due to financial unviability, following discussions to reduce costs. The decision comes amid scrutiny from U.S. authorities and Sri Lanka’s economic strain,

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.

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.