In recent years, Sri Lanka has witnessed a noticeable decline in electricity consumption, which has sparked much attention in both the energy sector and among the broader public.
Traditionally, rising electricity demand is seen as a sign of a growing economy, with industries and households consuming more power as they expand and modernise. However, Sri Lanka’s electricity consumption has been falling, particularly in the past few years, which deviates from the typical pattern observed in developing nations.
This decline has important implications for the country’s energy sector, its economy, and its long-term sustainability. To understand the causes of this trend, The Sunday Morning explored the factors at play and analysed the broader context in which this change is taking place.
Shifts in consumer behaviour
According to Electricity Consumers’ Association (ECA) President Sanjeewa Dhammika, there has been a significant reduction in electricity consumption in Sri Lanka, particularly after 2022.
Speaking to The Sunday Morning, he said that this decline could largely be attributed to two key factors: the closure of many factories, which has reduced industrial electricity usage by approximately 20%, and the conscious effort of consumers, particularly in households, to limit their use of electricity.
According to him, this has manifested in individuals deliberately turning off electric lights, even those used for nighttime security purposes, as well as the decline in the use of household appliances like washing machines.
Given this context, Dhammika noted that electricity had now become somewhat of a luxury, rather than a commonplace utility.
“Consumers are increasingly mindful of their consumption due to economic pressures and rising electricity costs. Furthermore, the Ceylon Electricity Board (CEB) has been providing annual projections and forecasts about electricity usage, but in reality, the actual consumption remains significantly lower than expected.
“This discrepancy between the projections and actual consumption further highlights how economic difficulties, power-saving efforts, and a shift in consumer behaviour have impacted the overall demand for electricity,” he said.
Additionally, Dhammika highlighted the rise in solar energy adoption, especially among households.
“Many individuals have installed solar panels on their rooftops, which allows them to reduce their reliance on the national grid. As a result, these consumers are no longer paying electricity bills, or their charges are substantially reduced, which in turn impacts the financial stability of the CEB.
“This shift towards renewable energy sources also suggests a growing trend of self-sufficiency and sustainability, reducing the dependency on the national electricity supply and contributing to lower overall consumption,” he added.
Meanwhile, Sri Lanka Sustainable Energy Authority (SLSEA) Chairman Prof. Wijendra Bandara said that the increase in sustainable energy sources such as solar power had significantly affected the electricity grid.
However, he noted that while the country’s electricity consumption had decreased, the generation of electricity had increased. He added that solar energy generation had also increased, saving the country millions of rupees.
“The electricity tariff was reduced. According to the report of the Public Utilities Commission of Sri Lanka, the increase in renewable and sustainable energy generation has led to a reduction in power tariffs. We have met our targets, but it has still affected the grid,” he said.
Impact of economic crisis and energy efficiency
The Sunday Morning also spoke to Sujeewa Dissanayake, who runs a small-scale apparel business, for insight into his experience during the crisis and the high electricity tariffs, as well as whether he had reduced electricity consumption.
“Several factors have contributed to the decrease in electricity consumption. In recent years, the country has faced an economic crisis, marked by rising inflation, increasing debt, and instability. The growth we had witnessed in our businesses over the past decade has slowed considerably, resulting in a decline in industrial and commercial activities.
“Industries, especially those in manufacturing, typically consume large amounts of electricity. As these sectors scaled back production or faced financial difficulties, electricity demand from our industries dropped. This would have had a direct impact on the overall consumption of power,” he said.
He also noted that, in addition to the economic crisis and the pandemic, another factor influencing electricity consumption in Sri Lanka was the increase in energy efficiency.
“Over the past few years, there has been a strong push to promote energy-saving technologies and practices. Accordingly, we have also been compelled to use methods such as LED lighting, energy-efficient air conditioners, and other modern household devices, which have significantly reduced power consumption both in our homes and factories.
“Further, people have become more conscious of their energy usage. These efforts may have led to a gradual decline in per capita electricity usage, even as the population continues to grow. However, I think there is a positive impact too,” he said.
A challenge to the energy sector
However, on the other hand, the decline in electricity demand presents challenges for the energy sector. The CEB, which is responsible for generating and distributing electricity in Sri Lanka, relies heavily on electricity sales to finance its operations.
The drop in demand has led to reduced revenue for the CEB, making it harder for the organisation to fund infrastructure improvements, maintain existing facilities, and invest in new projects. This can have long-term implications for the energy sector’s ability to keep up with future demand, particularly when the economy recovers and consumption begins to rise again.
Against this backdrop, The Sunday Morning spoke to CEB Chairman Dr. Tilak Siyambalapitiya, who noted that the fluctuations in electricity sales was a normal occurrence.
He said that electricity sales had been fluctuating over the past few years, with a decline in 2020, an increase in 2021, and another drop in 2022. Despite the expected 7% growth in the long term, these fluctuations highlight the challenges the sector faces in maintaining stability and growth. This inconsistency calls for a more robust strategy to address the underlying issues and ensure a more stable future for the industry.
The future of electricity consumption in Sri Lanka is closely tied to the country’s economic recovery and ongoing efforts to promote energy efficiency. As Sri Lanka recovers from the pandemic and its economic challenges, electricity demand is expected to rise again, particularly in the industrial sector.
However, this increase may be tempered by continued improvements in energy efficiency and a growing reliance on renewable energy sources. The trend of consumers shifting towards more sustainable energy consumption is likely to persist, with solar energy playing a prominent role in reducing reliance on the national grid.