Sri Lanka has approved a 20-year power purchase agreement between the island nation's government and Adani Green Energy for the development of 484 megawatt wind power stations in the northeast region.

"The negotiated tariff rate of $0.0826 per kilo watt hour is to be paid in local rupees on the prevailing exchange rate at the time of payment," Energy Minister Kanchana Wijesekara said in a post on social media platform X.

He added that the purchasing cost would be below the current average cost of energy at 39.02 Sri Lankan rupees per kilo watt hour.

According to a cabinet note, the development of wind power stations of 484 Mega Watt in Mannar and Poonerin had already been granted cabinet approval in March 2022.

After the approval for an agreement with Adani Green Energy Limited of India, a negotiation committee was appointed by the Cabinet of Ministers in order to evaluate the project proposal furnished by the said company.

"Based on the recommendations of that Committee, the Cabinet of Ministers granted approval to the resolution forwarded by the Minister of Electricity and Power to accept the last price as $8.26," the Minister said.