The objective of this report, therefore,is to provide a comprehensive analysis of the development ofthe renewable power generation sector in the country over aperiod of ten years, from 1996 to 2006, as a reference forthe design of future policy and market interventions in SriLanka and other countries. This analysis aims to assiststakeholders to assess the potential for growth in terms ofenergy contribution from indigenous renewable resources,private sector investment and rural infrastructuredevelopment. The report also serves to reveal theconflicting priorities of stakeholders, which impact thedevelopment of indigenous energy resources, and therebycreate a platform for constructive debate towards realizinga sustainable and optimal outcome for the country.