IEEJ: August 2012 All Right Reserved About Sri Lanka
 Total Energy Scenario
 Energy Demand Energy supply Bottlenecks to develop Energy Policy

IEEJ: August 2012 All Right Reserved

Indrani vithanage

2012/6/15

3

IEEJ: August 2012 All Right Reserved

Indrani vithanage

2012/6/15

 Sri Lanka is an island in the Indian Ocean
 Official name is Democratic Socialist Republicof Sri Lanka
 Extent is 65,610 sq.km. (maximum length435km. Maximum width -225km.)
 Tropical and two major rainy seasons.
 Highest point is Piduruthalagala
 Lowest point is sea level4

IEEJ: August 2012 All Right Reserved Natural resources Arable land -limestone,Graphite,mineral sands, gems,
phosphates and clay
 Land use percentages
 Water - 870sq.km
 land area - 6474 sqkm.
 Coast line - 1,340km.

13.43%
 permanent crops 15.78%
 Irrigated land 6,510 sq..km.

2012/6/15

Indrani vithanage

5

IEEJ: August 2012 All Right Reserved Population - 19.04 million
 Language- Sinhala Ethnicity- Religion - Primacy to Buddhism

 Sinhalese- Christians
 Literacy rate- 92.3%
 Life expectancy;- male- 70 andfemale- 75
 Density is highest in South west
where Colombo (capital)

2012/6/15

74%
 Tamil- 18%
 Muslims- 7%
 others - 1%

Indrani vithanage

6

IEEJ: August 2012 All Right Reserved

Indrani vithanage

2012/6/15

 GDP - 158$ billion
 Annual Growth Rate - 8.3%
 Composition of GDP: Agriculture – 12.8% (major products are rice, tea

rubber coconut and spices) Industrial :- 29.2% (major industries are garments,

leather goods, tea coconut, cement , chemicals, tobacco.
Petroliun refinning) Services – 58%7

IEEJ: August 2012 All Right Reserved

Indrani vithanage

2012/6/15

 Currency - Sri Lankan Rupee(LKR)
 Exchange Rate:- LKR per 129.662$ (2012) population below poverty - 22% (1997)
 Inflation rate - 9.6%(2002)
 Labor force by occupation :-services - 45% agriculture - 38% industry - 17%

8

IEEJ: August 2012 All Right Reserved

IEEJ: August 2012 All Right Reserved

Sri Lanka Primary Energy Supply:
Coal
0.5%

Biomass
47.7%

Hydro
9.5%

Petroleum
42.3%

Total primary energy supply:
10 million toe
Per capita supply:
0.5 toe
Share of renewable energy
57.2%
10

IEEJ: August 2012 All Right Reserved

Energy Delivered to End-users
Subsector

Household, commercial & others
Transport
Industry
Agriculture
Total
Total in thousand tonne of oil
equivalent (ktoe)

Biomass
Petroleum Electricity Coal (MT)(thousand (thousand(GWh)MT)
MT)
8,376.2
337.9
5,236.6
2,103.3
3,955.7300.7
2,956.6
67.8
13.7
12,331.9
2,755.6
8,193.2
67.8
4,689.0
56.7%

112,802.3
33.9%

704.6
8.5%

67.8
0.8%

IEEJ: August 2012 All Right ReservedHouseholds +Commercial + LPGusers
11%

Industrial + Estate
Sector
8%

Transport
50%

Power Generation
31%

IEEJ: August 2012 All Right Reserved

Petroleum Sub-sector

 All petroleum is imported either as crude oil orrefined products One 50,000 barrel/day refinery in operation, expansion
to 125,000 barrel/day planned Country demand equivalent to about 4,1 million MT(approx 70,000 bbl/day) Transport sector uses about 75% of petroleum at
end-user level (no other forms of energy is usedfor transport)
 Two retailers, one joint terminal company
 Efforts to use renewable energy for transport attheir infancy
 Development of biofuels at experimental stage
 More work required13

IEEJ: August 2012 All Right Reserved•

Governing Structure The Ministry of Petroleum and Petroleum Resource Development is incharge of the sector.

•Market Players
 State owned Ceylon Petroleum Corporation (CPC) carries out importation ofcrude oil and finished products as well as refining the imported crude usingits 60,000 barrels/day refinery.
 CPC and Lanka Indian Oil Company (LIOC) posses storage and distribution
networks across the country.
 Two LPG suppliers are operational at present.

•Resources Recent studies have shown positive signs about petroleum resources being
available in territorial waters of Sri Lanka.
 Currently a bidding process is going on for exploration of petroleum.

IEEJ: August 2012 All Right Reserved

Electricity Sub-sector

 About 40% of electricity generation is from renewablesources (both conventional and non-conventional)
 Renewable share is declining as growth in demandrequires rapid development of new generating plant No supply demand gap; last load shedding was in 2002
 However, growing demand required thermal generation
 All thermal generation is oil-fired; new coal-fired power
plants under construction
 About 93% of households now served by the grid, 2%
serve by off-grid services
 All off-grid services are from renewable sources Electricity prices are high compared with other countries
 Provides life-line rates
 Cost of non-conventional renewables is an issue
15

IEEJ: August 2012 All Right Reserved

Governing Structure Ministry of Power and Energy is the governing body of the sectorMarket Players
 Ceylon Electricity Boar (CEB) is the owner and the operator of the national gridand the majority of power generation facilities including all major hydro powerplants.
 A specialized electricity distribution company is involved in distributing electricity
to about 20% of the total electricity consumers of the country.
 8 independent power producers operate thermal power plants and sells thegeneration to CEB in accordance to long term Power Purchase Agreements.
 More than 50 small scale power producers are in operation under a separate
scheme specifically established to develop the renewable based power
generation in the country.

Resources Sri Lanka extensively utilize Hydro power for electricity generation and almost alllarge scale hydro sites are already being used.
 Good potential of Renewable Energy Resources

IEEJ: August 2012 All Right Reserved

IEEJ: August 2012 All Right Reserved

IEEJ: August 2012 All Right Reserved

IEEJ: August 2012 All Right Reserved Strengths
 Abundant availability of biomass as an energy source.
 No cost biomass provides almost 50% of country energy

demand.
 High portion of electricity is generated through low cost hydro.
 No seasonality effects on energy consumption.
 Almost 93% of households already electrified.

IEEJ: August 2012 All Right Reserved Weaknesses
 Total petroleum demand has to be imported (almost 1/3 ofcountry foreign earnings).
 Hydro resources are fully utilized.
 Thermal power is generated using liquid petroleum andcheaper options are yet to be developed (e.g. Coal & nuclear).
 Being an island, cross border energy trade is curtailed.

IEEJ: August 2012 All Right ReservedOpportunities

Petroleum exploration has being
initiated backed by strong
indications of either gas or liquidpetroleum being available.
 A large potential for renewableenergy development has been
identified (e.g. wind potential
estimated to be 20,000 MW).
 Vigorous campaigns are on-goingto reduce energy wastages.
 Development of cheaper power
generating options are underway,
which could reduce the country
energy costs substantially.
IEEJ: August 2012 All Right Reserved ThreatsHighly susceptible to international petroleum price variations.

Increasing energy demand being met exclusively through imported
petroleum fuels could lead to heavy Budget deficits.

Emerging environmental concerns could limit exploitation of cheaperenergy supply options such as coal.

Country energy security is compromised against cost.

IEEJ: August 2012 All Right Reserved



The Government recently revised and approved the National Energy
Policy and Strategies of Sri Lanka[1]. The policy document consistsof (a) Energy Policy Elements (b) Implementing Strategies and (c)Specific Targets, Milestones and Institutional Responsibilities. Themajor guiding policy elements are the following:(i) Providing Basic Energy Needs(ii) Ensuring Energy Security(iii) Promoting Energy Efficiency and Conservation(iv) Promoting Indigenous Resources(v) Adopting an Appropriate Pricing Policy(vi) Enhancing Energy Sector Management Capacity(vii) Consumer Protection and Ensuring a Level Playing Field(viii) Enhancing the Quality of Energy Services(ix) Protection from Adverse Environmental Impacts of Energy
Facilities[IEEJ: August 2012 All Right Reserved

Thank You!

Contact : report@tky.ieej.or.jp