This paper analyzes the reliability of low voltage (LV) distribution system of the Sri Lankan power system. Perfor-mance of LV distribution systems where mainly domestic consumers depend on the individual components of the system. Failure rates of elements of the system are calculated based on the historical data of the LV distribution sys-tem in a semi-urban area. Load point reliability indices are calculated using the analytical method. Consumer-oriented reliability parameters and energy not served, and its cost are determined. As a method of improvement of reliability, inclusion of fuses to the lateral feeders of the main feeder is proposed. Load point reliability indices, consum-er-oriented reliability indices, and energy not served are calculated for the distribution system with fuses in lateral feeders. The results are compared with the reliability indices of the present system and analyzed.