US Vice Consul to Chennai, Maureen Chao, who caused outrage after referring to Tamils as "dirty and dark", has decided to leave her posting 'in the near future'.
The decision was announced by the US consulate spokesperson in Chennai on Saturday.
The incident occurred during a speech at SRM University in Chennai on 12 August when Chao shared her memories of a train journey she had taken over 20 years ago in India.
"I was on a 24-hour train trip from Delhi to Orissa. But, after 72 hours, the train still did not reach the destination.. and my skin became dirty and dark like the Tamilians."
Ms. Chao's comments have been described as a poorly worded attempt at joviality and not racist - her audience was, after all, largely Tamil.
But once reported in the press, her remarks stirred outrage in Tamil Nadu. Chief Minister Jayalalithaa demanded an apology for what she deemed blatant racism.
Keen to minimise any damage, the US Consulate swiftly stated, "during the speech Ms. Chao made an inappropriate comment. Ms. Chao deeply regrets if her unfortunate remarks offended anyone, as that was certainly not her intent."
But that has not assuaged the outrage, and with her case being reported critically in US media also, the diplomat is leaving Chennai.
Meanwhile, US State Department spokesperson, Victoria Nuland, reiterated that Chao's remarks, "did not reflect the best of American values in terms of tolerance for difference and diversity."
"We consider the comments absolutely unacceptable. I think you saw that she apologized almost immediately. She's voluntarily enrolled in a cultural sensitivity course. But obviously, they're unacceptable and inconsistent with core American values," she added.
Ms. Chao is former Fulbright scholar who has worked with foster children, refugees and low-income and homeless populations around the world, the Los Angeles Times reported.