The Asian Development Bank was contracted to provide technical assistance to the Government of Sri Lanka to formulate a strategy for the Energy Sector’s Master Plan to develop a sustainable energy sector for the country. Volume II presents the objects of the study, the results from the analysis of the future energy demand in Sri Lanka and the conclusions from the analysis of environmental regulations and social impact analysis. Moreover, it provides recommendations on the institutional sector required for energy planning. It also sheds light on the results of various alternative electricity and petroleum sector scenarios that were analyzed.