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. This is the final report structured in three volumes. The Volume III presents the approach and methodology that was undertaken to carry out the study, the current status of the energy sector in Sri Lanka, the results of the reviews, analysis of the energy demand, environmental regulations and social impact analysis of electricity to rural areas.