In the year to December 2011 power generation grew 7.5 percent to 11,522 GWh.
Sri Lanka raised power tariffs in February 2011, after credit-financed thermal power generation using imported petroleum amid a drought helped drive the country into a balance of payments crisis. Higher tariffs encourage efficient usage.
Sri Lanka's balance of payments pressure began around June 2011, due to surge in credit by state energy enterprises to manipulate prices and lost taxes by which were ultimately accommodated with central bank credit (printed money).
The rupee fell to 132 rupees from 110 though energy tariffs were raised, and interest rates were also raised to prevent money printing.
Analysts point out that if energy prices were raised in the first place, along with some monetary tightening, the rupee would not have fallen.
Hydro power generation, by state-run Ceylon Electricity Board plunged 63 percent to 1,072 GWh up to June 2012 from a year earlier while its thermal generation rose 134 percent to 1,906 GWh.
Generation by private producers rose 55.5 percent to 2,893GWh. Non conventional renewable energy - mainly mini-hydro and some wind - rose 8.2 percent to 60GWh.
Private thermal and renewable energy totaling 2,894GWh was 49.7 percent of total generation.During the month of June power generation rose 2.0 percent to 982GWh. CEB's hydro generation fell 57.1 percent to 164GWh and thermal rose 126 percent to 344GWh.
Thermal generation by private producers rose 10.5 percent to 473GWh and non conventional renewable energy rose 25.7 percent to 21GWh.
In the third quarter of 2012 Sri Lanka imposed power cuts, the first in a decade after a Chinese built coal plant broke down.