Adani Group is officially withdrawing from a $442 million wind power project in Sri Lanka after the government attempted to renegotiate the agreement for better energy rates.

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 has withdrawn from building two wind power projects in Sri Lanka after the new government sought lower tariffs last month, in the latest setback to the Gautam Adani-led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

Scrapping the Adani power project was one of the key poll promises of Anura Dissanayake, who rode to power on an anti-corruption plank.

Adani Green Energy shares rose 3% to Rs 946 in Thursday’s intraday trade after the company announced its decision to withdraw from two proposed wind power projects in Sri Lanka. The move follows the Sri Lankan government's request for lower tariffs,

The wind power project, which was to be established on Sri Lanka's north-western coastline, involved the development of a 484-megawatt renewable energy facility.

Despite securing most approvals, Billionaire Gautam Adani-owned Adani Green Energy has decided to withdraw from its $1 billion wind energy project in Sri Lanka. The company cited delays including unresolved environmental clearance and a Supreme Court case.

Adani Green Energy has reportedly decided to withdraw from its planned $1 billion wind energy project in Sri Lanka