Commonly, it has been considered that biomass energy is less cost effective, less efficient and of poor quality. Such misconceptions are also due to inadequate number of demonstrations carried out in Sri Lanka and very little awareness created among the investors and policy makers to move the concept forward as an economically viable enterprise and energy source. The present project was conceived to bridge this gap.The project on Biomass Energy Development was funded under Thematic Trust Funds (TTF) on Energy for Sustainable Development. For this particular project, the funds provided by the government of Norway were used. Four thematic areas: Thermal applications of biomass, Municipal waste gasification, Connecting private biomass plants to the national grid, and Information dissemination, were selected for implementation.