This is a best prospect industry sector for this country. Includes a market overview and trade data.
Last Published: 7/22/2019


The Sri Lankan government is aiming for an energy self-sufficient nation by 2030.  The objective is to increase the power generation capacity of the country from the existing 4,043 MW to 6,900 MW by 2025 with a significant increase in renewable energy.  Sri Lanka has already achieved a grid connectivity of 98 percent, which is relatively high by South Asian standards.  Electricity in Sri Lanka is generated using three primary sources:  thermal power (which includes coal and fuel oil), hydropower, and other non-conventional renewable energy sources (solar power and wind power).

From 2018- 2037, Sri Lanka plans to add 842 MW of Major Hydro, 215 MW of Mini Hydro, 1,389 MW of solar, 1,205 MW of wind, 85 MW of biomass, 425 MW of oil-based power, 1,500 MW of natural gas and 2,700 MW of coal power into the electricity generation system.  The annual total electricity demand is about 14,150 GWh.  The annual demand for electricity is expected to increase by 6 to 8 percent, a number constrained by high prices.

Despite the long-term plans, Sri Lanka experienced a number of power outages in 2018 and 2019 as hydropower reaches capacity and begins to decline due to less predictable weather patterns. 

As a result, Sri Lanka has plans to add additional coal, renewable, and liquefied natural gas (LNG) power plants in the next 10 years.  The government has several active proposals to develop LNG import facilities and related power plants and a new oil refinery.  The current oil refinery is over 45 years old and needs urgent modernization in order to meet the demand in the petroleum sector. 

The Sri Lanka Sustainable Energy Authority (SLSEA) actively promotes all forms of renewable energy.

Leading Sub-Sectors

Power Generation Plants


Sri Lanka needs to add significant capacity in order to meet current and future power demands which is forecast to grow at around eight percent annually. Sri Lanka has total electricity generating capacity of 40 GWH, as it mainly relies on thermal power, including a Chinese built coal power plant, which account for 45 percent of its supply. Inadequate rainfall has limited hydro power generating capacity and the government was forced to impose power cuts during early 2019 due to lack of generation capacity. The government has resorted to purchasing expensive emergency power to meet electricity shortages. Opportunities in the power sector include: wind and solar plants, LNG power plants, converting auto diesel-fired plants to dual fuel (liquid natural gas) plants, mini hydroelectricity plants, home solar systems, wind energy, electrical meters and switches, power transmission and control systems, and power cables.

SLSEA is actively promoting renewable energy options and statistics reveal renewable energy contribution is steadily increasing.  Sri Lanka has vast wind-energy resources due to its location in the Indian Ocean.  Eleven wind power plants are currently connected to the national grid.  USAID has assessed wind and solar energy potential for Sri Lanka.  This information is available on

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Ceylon Electricity Board                         

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Sri Lanka Energy Trade Development and Promotion