“Rural electrification” is a key element in the global energy development agenda. While being a developing country, Sri Lanka is enroot to achieve 100% of electrification at present. After the civil war ended in 2009 which lasted for more than 25 years, there has been much focus to fulfill the energy needs of the country. But the studies carried out to assess the impact of electrification are very much limited. This study focuses on meeting the gap of carrying out a scenario analysis of rural electrification and assessing the socio economic impact of electrification. The major focus has been given to see how energy system of a newly electrified village will vary over time. The research intends to identify how far the strategies used to implement a policy is realistic in the real world. Also the research extends to apply the proposed strategies to the energy model and analyze the behavior of the model. During the study a survey was carried out in a rural village in southern part of Sri Lanka and the data obtained were used to model the energy system of the village using a software called - LEAP (Long Range Energy Alternative Planning System). The energy system is simulated under different scenarios to analyze if certain strategies in the policy have been implemented in the village. Two scenarios were energy efficient lighting and energy efficient cooking stoves. A total energy balance has been carried out for the target sample with an analysis of global warming potential of the activities of the target family. The total energy consumption variation with the electrification and the percentage of energy consumed as electricity over time has been analyzed. Further the socio economic impacts of electrification have been studied. The impact of agricultural usage and economic productivity with electricity has been studied. The qualitative measures like attitude changes, modernization & technology adaptation were addressed to the extent possible.