Electricity tariffs up 15% from today
The Public Utilities Commission of Sri Lanka (PUCSL) has approved a 15% increase in electricity tariffs with effect from today (12), following a proposal by the Ceylon Electricity Board (CEB) for an 18.3% hike for the second half of 2025.
PUCSL Chairperson Prof. K.P.L. Chandralal, speaking at a media briefing in Colombo, said the revised rates were finalised after public consultations and a review of the electricity pricing methodology.
Under the revised structure, domestic users consuming less than 30 units will see an 8% hike, with unit charges rising from Rs. 4 to Rs. 4.50 and the fixed charge increasing from Rs. 75 to Rs. 80. Users consuming 31–60 units will pay Rs. 8 per unit (up from Rs. 6), with the fixed charge increased to Rs. 210.
Consumers using 61–90 units will now pay Rs. 18.50 per unit (up from Rs. 14), while the fixed charge remains Rs. 400. Those in the 91–120 unit bracket will be charged Rs. 24 per unit (up from Rs. 20), with no change to the Rs. 1,000 fixed charge. The 121–180 unit range will see a rate increase from Rs. 33 to Rs. 41, while those exceeding 180 units will pay Rs. 61 per unit, up from Rs. 52. The fixed monthly charge for the highest category has been revised to Rs. 2,000 from Rs. 2,100.
Tariff hikes also apply to religious and charitable institutions, as well as industrial, hotel, and general-purpose categories.
Despite the increase, the PUCSL noted a net annual relief for sectors such as industry and hospitality, due to a prior 20% reduction in January. The industrial sector will see a 15% rise from current levels, but a 20% decrease compared to 2024. Similarly, hotel operators will experience a 19% year-on-year drop.
On the other hand, commercial users face a 14% rise, equating to a 5% net increase over 2024, prompting concern among SMEs and service providers. Government institutions will absorb a 16% hike, without offsetting benefits from the January cut.
The PUCSL said the adjustment aligns with legal requirements for cost-reflective pricing and incorporates public feedback. It also comes ahead of IMF First Deputy Managing Director Dr. Gita Gopinath’s upcoming visit, with electricity pricing reform being a key condition under Sri Lanka’s IMF programme.
During the IMF’s staff-level agreement in April, Mission Chief Evan Papageorgiou stressed the importance of restoring cost-recovery pricing and the automatic adjustment mechanism, calling them critical for fiscal stability and investment in power infrastructure.