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55 million US dollars to build a 10 mega watt wind power plant in north-western Sri Lanka, the island's investment promotion agency said.
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The Board of Investment said it granted investment approval to Powergen Lanka to set up the wind power plant in Uppudaluwa, Puttalam.
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BOI approval entitles investors to tax breaks and duty free import of machinery and raw materials.
The venture is expected to commence operations by June 2011.
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The project will use seven 1.7 MW wind turbines for power generation, the BOI said.
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Narasimhan Ramkhumar, Director of Powergen Lanka, said around 75 percent of the power generation from the wind turbines during the year will be in April to October.
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The BOI statement said it was promoting investments in alternate energy to reduce dependence on fossil fuels.
"One of the biggest challenges that Sri Lanka faces today is finding and using alternative energy sources.
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