Sri Lanka's energy consumption
Sri Lanka's energy consumption is characterized by a diverse mix of sources, with a heavy reliance on hydroelectric power, biomass, and imported oil. As an island nation located in the Indian Ocean, Sri Lanka does not possess oil or natural gas reserves, making it fully dependent on imports for its oil needs. In 2022, the country consumed approximately 121,000 barrels of oil per day and utilized around 2.084 million metric tons of coal. Biomass plays a significant role in the energy landscape, accounting for over a third of total energy consumption while supporting agricultural viability.
In recent years, demand for electricity has surged due to urbanization, increased rural electrification, and the growing use of consumer electronics. The Ceylon Electricity Board oversees electricity generation and distribution, with about 40 percent of installed capacity coming from hydroelectric sources as of 2022. While renewable energy usage has been on the rise, traditional methods still dominate the energy mix, with hydropower alone generating nearly 90 percent of renewable electricity in 2021. The nation maintains strong economic ties with the Persian Gulf, particularly with Saudi Arabia and the UAE, which are key suppliers of oil. Overall, Sri Lanka's energy policy continues to adapt amid economic challenges and an evolving energy landscape.
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Sri Lanka's energy consumption
Official Name: Democratic Socialist Republic of Sri Lanka.
Summary: The south Asian island nation of Sri Lanka consumes energy in the form of hydroelectric, biomass, and oil and depends on imports for its oil; biomass is the country’s main energy resource.
Sri Lanka is an island nation off the southern coast of the Indian subcontinent, in the Indian Ocean. Historically known in the west as Ceylon, Sri Lanka was and remains a prominent exporter of tea and spices, as well as coffee and rubber. The plantations of the colonial era were dismantled by the socialist government that ruled from 1948 to 1977, after which the succeeding government began deregulating and privatizing most of its industries, a trend that continued until the 21st century, when the newly elected administration halted the privatization of state businesses and began reforming national utilities in an effort to protect the economy from volatile oil prices and other external factors.
Sri Lanka’s per capita income is greater than neighboring India’s, but it lags behind that of most of the world, and inflation reached 20 percent in the aftermath of the global financial crisis that began in late 2007. In 2023, the inflation rate was estimated to be 16.54 percent.
Sri Lanka’s energy policy is set by the Ministry of Power and Energy, while the generation and distribution of electricity are the purview of the Ceylon Electricity Board. Sri Lanka’s energy consumption is principally in the form of hydroelectric, biomass, and oil, which it imports in both crude and refined forms. Oil and coal provided an estimated 59 percent of the country’s electricity in 2021. With no oil or natural gas reserves, Sri Lanka is entirely dependent on imports. The import of refined oil (as well as liquefied petroleum gas and diesel) is necessary because the country’s consumption outmatches the capacity of its refineries. Sri Lanka’s consumption of oil was estimated to be 121,000 barrels per day in 2022. It also used a comparatively small amount of coal, about 2.084 million metric tons in 2022. Sri Lanka has strong economic and military ties to the Arab states of the Persian Gulf, which provide more than half of Sri Lanka’s oil. Saudi Arabia and the United Arab Emirates are Sri Lanka’s biggest sources of oil.
Biomass and waste accounted for 35.2 percent of Sri Lanka’s energy in 2021. The strong reliance on biomass helps keep the country’s many agricultural subsectors viable while capping the nation’s dependence on foreign oil imports and the volatility of petroleum prices. Hydroelectric power contributed about 40 percent of Sri Lanka’s installed electricity capacity, according to 2022 estimates.
Sri Lanka also has a large number of private power sources owned by organizations, businesses, and individuals, primarily thermal and minihydro plants; their total capacity is about one-third of the capacity of the electricity provided publicly through the grid. Demand for electricity has been increasing in the 21st century as the country grows culturally and economically. As in many developing nations, factors driving this increase in demand include growth in urbanization, increased electrification of rural areas (referring not only to the increased availability of electricity but also to the increased use of appliances and vehicles in agriculture), and the availability and popularity of consumer electronics and labor-saving appliances.
The use of renewable energy in Sri Lanka grew in the 21st century. In 2021, 89.9 percent of electricity generated by renewable sources came from hydropower plants, while 8.1 percent came from wind farms and 2 percent came from solar photovoltaic (PV) operations.
Bibliography
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