Sri Lanka is on the path towards becoming an internationally competitive middle-income country. This power and energy sector development plan is aligned to the country's development drive, and has been prepared to provide affordable, high quality and reliable energy for all citizens, rich or poor, equally by conserving country's precious natural environment, giving priority to the indigenous energy sources, and minimizing regional disparities in energy service delivery. The power and energy sector vision is to capture the full potential of all renewable and other indigenous resources in order for Sri Lanka to become a nation self-sufficient in energy. The total energy requirement of the country was around 11,125 ktoe in 2013, and the primary energy supply mainly consisted of 4,814 ktoe of biomass, 4,582 ktoe of fossil fuels, and 1,442 ktoe of hydro. Accordingly, 56% of total energy consumption is from indigenous (biomass + hydro), and Sri Lanka has to import fossil fuels to meet the balance. This requires importing 02 MMT of crude oil, 04 MMT of refined petroleum products and 2.25 MMT of coal to the country annually, costing approximately USD 5 billion in foreign exchange. The average annual total bill of imported fossil fuel is therefore 25% of our import expenditure, and nearly 50% of total export income. Therefore the power and energy sector has a huge bearing on the country's balance of trade and exchange rates.