I am not sure whether `ColorUtils.convertARGBPackedIntToColor(int);` really solved the issue. At the moment I don't see a proper way of setting colors by passing HEX values.

This feature is missing in AndEngine. We cannot use Hex colors. The class snippet from this link http://www.andengine.org/forums/tutorials/finding-extact-colour-values-t5516.html can be used.