[5] In 1895, Messrs Boustead Bros established a small power station in Bristol Building, Fort.

[6] Four years later in 1899, United Planters Company established the Colombo Electric Tramways, the first tram system in the country.

In 1902, Colombo Electric Tramways and Lighting Co. Ltd. was formed, and the Pettah Power Station was established on Gas Works Street.

In 1912, the government commissioned a small hydroelectric power station at Black Pool, and inaugurated the Nuwara Eliya Electricity Scheme.

[7] The same year, regional offices were opened in Norton Bridge, Nuwara Eliya, Diyathalawa, Panadura, Negombo, Avissawella, and Peradeniya, to decentralise the electricity works.

[clarification needed] On 1 November 1969, the current Ceylon Electricity Board (CEB) was established under Parliament Act No.

[9][needs update] Hydroelectric power generation has been constantly under development since the introduction of the national grid itself, but its market share is declining because suitable new sites are scarce.

[9] Thermal power stations in Sri Lanka runs on diesel, other fuel oils, naptha or coal.

[12] On 13 September 2016 the Attorney General's Department informed the Supreme Court that the Sampur Coal fired plant has been cancelled and will not be built.

The grid, apart from being unstable in most provinces, is only capable of handling a small increase in load, typically limited to a few megawatts.

This factor contributes to a large percentage in development costs for wind farms constructed at such locations.

The government policy limit of 10 MW per wind project also significantly decreases economies of scale, further straining such developments.

[17] The Ministry made allegations of wrongdoing in allocating energy licences, including the structuring of the wind power tariff.

In July 2010, engineers at the Ceylon Electricity Board raised further concerns regarding the approval of private wind projects with extra high tariffs, presumably some of the highest in the world.

The project involves the construction of a HVDC connection between Madurai in southern India and Anuradhapura in central Sri Lanka, through the Palk Strait.

20 of 2009,[37] the Public Utilities Commission of Sri Lanka has granted the following entities exemptions in electricity usage: