Energy Activities Support Facility (SEFF)

approved

Sri Lanka reached 100% household electrification in 2016. The peak demand of 2,415 megawatts (MW) recorded in 2023 is expected to reach 4,400 MW by 2030. The installed generation capacity in 2023, excluding rooftop solar, was 4,381 MW (48% fossil fuel based, 32% large hydro, 9% mini hydro, and 11% other renewables), generating 15,576 gigawatt-hours (30% coal, 29% large hydro, 21% nonconventional renewable energy, and 20% fuel oil). A few of the challenges in Sri Lanka's power sector can be attributed to high dependence on imported fossil fuels, and the slow progress in large scale competitive renewable energy development. The combination of these problems has led to high power generation costs, insufficient generation capacity to meet the growing electricity demand, limited private sector participation, and emergency power purchases. The International Monetary Fund has identified the power sector as one of the macro critical sectors requiring immediate attention.