Small Hydro Power Sri Lanka
On 30 April 1996, the first modern small hydro power (SHP) project was commissioned at Dick Oya by Mr. PremasiriSumanasekara of Hydro Tech Lanka (Private) Limited. Nearly 21 years hence, 93 plants totaling 330 MW supply 4.5% of the nation’s demand, saving millions of dollars of foreign exchange to the country annually. Moreover, SHP projects, while being environmentally benign, have stimulated tangible economic progress among rural Sri Lankan communities.
Sri Lanka’s SHP industry developed by the private sector has been recognized internationally as an exemplary success. Contributing factors for this noteworthy achievement are a straightforward application process on a first-come, first served basis; a standardized power purchase agreement with the utility; a viable and guaranteed tariff; tax and duty incentives; favourable loan facilities from commercial banks; availability of historical rainfall data and survey maps; and, above all, a dynamic local combination of enterprising entrepreneurs and capable engineers