Sri Lanka Approves 10% Electricity Tariff Hike Amidst Energy Sector Challenges
Sri Lanka's Public Utilities Commission has approved a 10% increase in electricity tariffs effective immediately. This adjustment aims to align with the IMF Standby Agreement's requirement for cost recovery and support the financially struggling CEB, which reported a loss of Rs. 38.7 billion for FY 2025.
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The Public Utilities Commission of Sri Lanka has implemented a 10% increase in electricity tariffs effective immediately. This decision is part of the IMF Standby Agreement's mandate for periodic tariff revisions to maintain cost recovery for the CEB, which reported a Rs. 38.7 billion loss for FY 2025.
The current energy crisis is exacerbated by reduced hydropower generation, prompting reliance on costly coal and fuel sources. Additionally, instability in the Middle East has led to uncertainties in fuel availability.
Criticism has arisen regarding government appointments, including Dr. Tilak Siyambalapitiya, who opposes renewable energy, raising concerns over the country's renewable energy targets. Reduced feed-in tariffs for solar energy projects have also drawn negative reactions, impacting investment in clean energy.
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