This is a best prospect industry sector for this country. Includes a market overview and trade data.
Last Published: 8/11/2017
The Sri Lankan Government is aiming for an energy self-sufficient nation by 2030.  In addition to self-sufficiency, the Sri Lankan Government’s Energy Sector and Development Plan 2015-2025 expects to increase the share of electricity generation from renewable energy sources from 50 percent in 2014 to 60 percent by 2020 and finally to meet the total demand from renewable and other indigenous energy resources by 2030. Sri Lanka has already achieved a grid connectivity of 98 percent, which is commendable by South Asian standards.  Electricity in Sri Lanka is generated using three primary sources — thermal power (which includes energy from biomass, coal, and all other fuel-oil sources), hydro power (including small hydro), and other non-conventional renewable energy sources (solar power and wind power).
In 2016, total installed power generation capacity of the country was 4,018 MW, consisting of 1,384 MW of coal power, 1,215 MW of oil burning thermal power, 1,384 MW of hydro power and 519 MW of non-conventional renewable energy sources such as wind, mini hydro, biomass and solar power plants. The annual total electricity demand is about 14,150 GWh. The overall annual demand for electricity is expected to increase by 6 to 8 percent, a number constrained by high prices.
Issues with the quality of power supply remains with the frequent breakdown of a Chinese-built coal power plant, rising fuel costs and droughts. The Government is considering proposals for liquefied natural gas (LNG) import facilities 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 Government is also having discussions with India and Japan to build new coal power plants.
The Sri Lanka Sustainable Energy Authority (SLSEA) actively promotes all forms of renewable energy. By end 2016, there were 342 MW of mini-hydro power, 128 MW of wind power, 24 MW of biomass power and 21 MW of solar power connected to the national grid.
Leading Sub-Sectors
Power Generation Plants.
Opportunities in the power sector include: new power plants, converting auto diesel-fired plants to duel 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.  Already eleven wind power plants are connected to the national grid.  USAID has assessed wind and solar energy potential for Sri Lanka. This information is available on the National Renewable Energy Laboratory website.
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Sri Lanka Energy Trade Development and Promotion