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Proceedings of the 9 Symposium on Applied Science, Business & Industrial Research – 2017
ISSN 2279-1558, ISBN 978-955-7442-09-9

The Evaluation of Energy Consumption and Energy Saving Potential in
the Small and Medium Enterprises of Sri Lanka
Based on Five Case Studies

Dilhani PUN, Jayasena DM
Department of Industrial Management, Wayamba University of Sri Lanka
punilushadilhani@yahoo.com
ABSTRACT

Small and medium sized enterprises (SMEs) in Sri Lanka play a major role in
economy of the country. Energy efficiency in Sri Lankan SMEs is typically low because of
outdated technologies, un-skilled labor force, lack of knowledge in policies and standards.
This study focused on identification, evaluation and analysis of the energy saving potential
in SMEs in the country. Five industrial sectors which consume more than 50% of total
energy consumption of SMEs were selected to conduct comprehensive energy audits to
identify the root causes for inefficient energy consumption and to measure the energy usage
for specific processes and equipment in the facilities. The total energy saving potential for
selected companies was ranged from 20% to 30% of quotient from total energy
consumption while about 10% to 15% energy costs can be cut off from current expenses.
In order to achieve gap between the baseline and the benchmark it is required in were
categorized into four areas. Those were designed as the improvements in Technology,
Resource Efficiency, Humans and Policies & Standards.
KEYWORDS: Energy cost, Energy efficiency, Energy saving potential, SMEs (Small
and Medium sector Enterprises)

1 INTRODUCTION as the mentioned sectors consume more than
50% of the total energy consumption of the
The Small and medium sized country by SMEs.
enterprises (SMEs) constitute a significant
industrial segment in Sri Lanka as it 2 LITERATURE REVIEW
accounts for more than 75% of the total
number of enterprises, provides 45% of the The small and medium enterprise
employment and contributes to 52% of the (SME) sector is well recognized for its
Gross Domestic Production. contribution to employment, innovation and
economic dynamism and is considered as an
Therefore it can be understood that the engine of growth and an essential part of a
resource consumption including material healthy economy (Wickremasinghe, 2011).
and energy is high in SMEs as the number Further SME make up about 90% of
of companies are high. However it has been manufacturing establishments and use about
identified that the energy efficiency in Sri 50% of the energy consumed by industry.
Lankan SMEs is typically low because of Despite using less energy in a given facility
outdated technologies, un-skilled labor than their larger counterparts, SME are good
force, lack of knowledge in policies and targets for energy efficiency programs for a
standards. number of reasons.
This research basically focuses on Not only do they pay higher prices for
firms representing five business sectors their energy and are less likely to have
which consume more than 50% of total dedicated onsite energy managers, but also
energy consumption. They are apparel, food smaller energy savings projects tend to save
and beverage, fabricated metal products, a higher percentage of total consumption
chemical products and printing & packaging (Trombley, 2014).

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