Earth Systems and Environment

, Volume 2, Issue 2, pp 401–412 | Cite as

Cost–Benefit Analysis of Samanalawewa Hydroelectric Project in Sri Lanka: An Ex Post Analysis

  • E. P. N. UdayakumaraEmail author
  • U. A. D. P. Gunawardena
Original Article


Cost–benefit analysis was applied for 120 MW Samanalawewa hydroelectric reservoir plant in Sri Lanka. Valuation methods were applied to estimate losses in agriculture, natural vegetation, water losses and benefits of avoided carbon emissions. The project resulted in a negative net present value under the standard conditions stipulated and possible changes to the variables to make the project positive were investigated. The study highlights the importance of valuing environmental and social impacts where large-scale transformation of land uses in sensitive areas is involved. It outlines a framework for a composite tool that could accommodate environmental externalities, social inequities and uncertainties along expanded temporal and spatial scales.


Hydropower Cost–benefit analysis Environmental valuation Carbon prices Renewable energy 


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Copyright information

© Springer Nature Switzerland AG 2018

Authors and Affiliations

  • E. P. N. Udayakumara
    • 1
    Email author
  • U. A. D. P. Gunawardena
    • 2
  1. 1.Department of Natural Resources, Faculty of Applied SciencesSabaragamuwa University of Sri LankaBelihuloyaSri Lanka
  2. 2.Department of Forestry and Environmental Science, Faculty of Applied SciencesUniversity of Sri JayewardenepuraNugegodaSri Lanka

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