Worldwide energy costs have grown in recent years due to the dwindling global fossil fuel resources and the increased reliance on them for global energy production. This is a common scenario in many nations, including Sri Lanka. As a developing country, Sri Lanka should encourage the diversification of its renewable energy supplies using locally available resources. In this regard, Sri Lanka can promote the use of agricultural residues for energy generation. The present work explores the energy potential of the solid waste generated by the rice industry: rice straw (RS) and rice husk (RH). A new approach was developed using statistical data on rice production and paddy cultivation in each district of the island. The obtained data were integrated into a geographic information system (GIS) to provide geo-referenced results. A physico-chemical characterization of the RS and RH was conducted to correlate the properties of raw materials to their potential energy generation. As an energy generation technology, the grate-fired combustion boiler accompanied by steam turbine cycle (GFC/ST) was selected. Our findings show that the total energy capacity using by-products of the rice industry is estimated to be 2129.24 ktoe/year of primary energy, with a capacity of 977 Mwe, producing 5.65 TWh of electricity annually. An economic analysis shows ten districts have a high profit index (PI > 1). The districts with the highest PI values are Anuradhapura, Ampara, Polonnaruwa, and Kurunegala, with annual energy potentials of 286 ktoe, 279 ktoe, 231 ktoe, and 160 ktoe, respectively. This work aims to aid future policy decisions by identifying potential districts in which to develop infrastructure for energy generation using agricultural waste, thus reducing net greenhouse gas emissions (GHG) of Sri Lanka.