Electricity Tariffs to Rise in June, But Remain Lower Than December

Sri Lankans should prepare for a revision in electricity tariffs this June, but the upcoming increase will not surpass the peak levels seen in late 2024, according to President Anura Kumara Dissanayake.

Speaking during a televised interview, President Dissanayake acknowledged that electricity tariffs will be increased in the next tariff adjustment cycle, but reassured consumers that “the new rates will still be lower than the electricity charges applicable in December last year.”

The proposed changes come just months after a significant 20%–30% reduction in electricity rates in January, a move that was widely welcomed by both residential and industrial consumers recovering from a year of economic challenges and inflationary pressures.

“We are mindful of the burden on the people,” the President said. “This increase will not reverse the full benefit of the earlier reduction.”

According to Dissanayake, the Ceylon Electricity Board (CEB) is expected to submit its tariff proposal by May 15, following which the Public Utilities Commission of Sri Lanka (PUCSL) will deliberate and finalize the new rates within two weeks.

Industry insiders suggest that the revision is part of a broader effort to stabilize the financial health of the CEB, which has been operating under severe losses, exacerbated by rising fuel costs, currency depreciation, and delayed reforms in the energy sector.

The President's remarks come amid rising public concern over utility prices and living costs, with many households still adjusting to economic reforms and tax hikes introduced earlier this year.

Consumer Sentiment and Watchpoints

Although details of the CEB's proposal remain under wraps, analysts predict a moderate hike, potentially affecting high-usage households more than low-income consumers. Whether a tiered pricing system will be used to soften the blow on vulnerable groups is yet to be seen.

The PUCSL, as the regulator, has faced criticism in the past over the transparency of its decision-making process. This time, both watchdog groups and consumer associations are expected to monitor the revision closely.

Looking Ahead

This June adjustment may serve as a litmus test for the government’s balancing act between economic reform and social welfare. With the President asserting that the hike will be restrained, the coming weeks will reveal how that promise translates into real-world billing for everyday Sri Lankans.