The Board of Investment said it granted investment approval to Powergen Lanka to set up the wind farm plant in Uppudaluwa, Puttalam.
BOI approval entitles investors to tax breaks and duty free import of wind turbines and raw materials. The wind farm is expected to commence operations by June 2011.
The wind energy project will use seven 1.7 MW wind turbines for power generation, the BOI said. 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.
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."