This country report assesses Sri Lanka’s experience in reforming its power sector for lessons and insights that other economies could find useful when pursuing their own power sector planning and policy and strategy formulation.

Sri Lanka’s power sector reforms were undertaken as part of a larger overall economic recovery effort and much-needed reconstruction program following a 30-year civil war. The power sector’s restructuring, primarily geared toward encouraging more competition and improved regulation, has brought about wider access to the grid, lower transmission and distribution losses, and a more efficient generation system; but it was met with limited success in unbundling the power system and in making electricity tariffs cost-based and more efficient.