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. Sri Lanka has already achieved a grid connectivity of 98%, which is commendable by South Asian standards. Current total installed power generation capacity of the country is approximately 4,050 MW, consisting of 900 MW of coal power, 1,335 MW of oil burning thermal power, 1,375 MW of hydro power and 442 MW of non-conventional renewable energy sources such as wind, mini hydro, biomass and solar power plants. The annual total electricity demand is about 10,500 GWh, comprising of 38% from domestic consumers, 39% from industries and 20% from commercial enterprises, with the balance coming from other sectors such as religious organizations and street lighting. The overall annual demand for electricity is expected to increase by around 4-6 %, a number constrained by high prices.