New Data Reveals Sri Lanka’s Industrial Energy Use Plus Emission Opportunities

The EU-Funded Accelerating Industries’ Climate Response in Sri Lanka (AICRSL) project has produced new data, which reveals, for the first time, national industrial sector energy consumption patterns and the potential for reducing greenhouse gas (GHG) emissions. The ground-breaking data was compiled in close collaboration with the Sri Lanka Sustainable Energy Authority and presented by Jagathdeva Vidanagama, Chief Technical Specialist at the United Nations Industrial Development Organization (UNIDO) at the 2025 Industry Dialogue

Highly concentrated electricity consumption

Zooming into electricity consumption, the data reveals that Sri Lanka has approximately 70,500 industrial connections to the national grid. However, electricity consumption is highly concentrated. “Out of that 70,500 industries, 348 industries consume nearly 45 per cent of industry sector electricity. Then another 5,794 industries consume 47 per cent,” Dr. Vidanagama noted. In contrast, over 64,000 smaller industries collectively use just 8 per cent.

This disparity led the data production team to focus on the top 6,142 electricity-consuming industries, which account for 92 per cent of industrial electricity usage, to ultimately enable emissions reduction opportunities. “Data like this will enable stakeholders to identify the potential of emission reduction and energy efficiency improvements in the industry sector,” Dr. Vidanagama said.

Sector and sub-sector electricity use revealed for the first time

For the first time, sector and sub-sector data for industries in Sri Lanka has also been produced. This revealed that the food and beverage industry emerged as the highest consumer, using 21 per cent of industrial electricity. The textile and apparel sector followed at 15.76 per cent, with plastic industries contributing 8.85 per cent. “Most interestingly, seven specific sectors, including national water supply and green export, consume 75 per cent of industrial electricity,” Dr. Vidanagama added.

Delving into industrial sub-sectors, the food and beverage sector showed that tea, rice, and meat processing are the largest electricity users. Meanwhile, in the textile and apparel domain, the garment sector alone consumes 10.5 per cent, making it the single largest electricity-consuming sub-sector in Sri Lanka.

The energy mix and geographic picture also comes into view

The project team also worked alongside the Sri Lanka Sustainable Energy Authority and energy service companies (ESCOs) to estimate energy mixes in key sectors. “For example, in the tea sector, 44 per cent of energy is from biomass and 11 per cent from electricity,” Dr. Vidanagama explained. Similar evaluations were conducted for textile processing, apparel, and rubber (tire manufacturing) sub-sectors.

Meanwhile, geographically, industrial electricity use is uneven. “There are about 2,300 energy-intensive industries located in the Western Province, while only 115 are in the Northern Province,” Dr. Vidanagama said. Industries in the Western Province account for 61 per cent of industrial electricity consumption, compared to just 2.5 per cent in the North.

Building sector-specific metrics for emission reduction

The data production team now plans to develop comprehensive, sector-specific metrics over the next two years to better understand and act on emission reduction opportunities across Sri Lanka’s industrial sector, Dr. Vidanagama explained. These metrics will focus on quantifying the energy savings and emission reduction potential within each industrial sub-sector.

The effort will include detailed assessments of energy management systems across industries, beginning with areas that show high potential for efficiency gains. “We have identified several areas related to energy management,” he noted, highlighting examples such as steam system optimization in key sectors. “How much can we save in the textile sector? How much can we save in the tea sector? These are the kinds of specific questions we are working to answer.”

The project aims to support a wide range of stakeholders, from donor agencies and project developers to financial institutions and policymakers, in identifying where investment and technical interventions can have the greatest impact.

“These metrics will be very useful,” Dr. Vidanagama emphasized, “not just for reporting, but for guiding real action on the ground to mitigate emissions and improve energy efficiency.”

This forward-looking approach, grounded in data and sectoral analysis, reflects a commitment to long-term, measurable change in Sri Lanka’s industrial energy landscape.