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This component aims at promoting the commercialization of improved and modern biomass energy technologies for both heat and power applications in the industrial sector in Sri Lanka. GEF resources will be used to finance incremental activities that would ensure the effective implementation of bioenergy technologies (BETs) such as technical and financial feasibility analysis, and monitoring of operation and performance of the installed demonstration projects etc. Such pilots are intended to demonstrate to the government and the private sector (particularly in the energy, industry, and banking/financial sectors), the techno-economic viability and benefits of BETs, especially modern technologies with high efficiency. The demonstrations will be carried out to showcase the planning, design, engineering, financing, and installation, operation, maintenance and performance evaluation of a range of BETs (gasification, combustion and energy-efficiency improvements in biomass-fired boilers, furnaces dryers and kilns).