Sri Lanka’s electricity tariffs remain nearly 96% higher on a net average basis compared to rates in August 2022, despite several downward revisions, according to data released by the Central Bank of Sri Lanka.
The Department of Economic Research of the Central Bank, in a recent update shared via LinkedIn, highlighted that the most recent 15% hike in June 2025 following three consecutive reductions has pushed cumulative tariff increases to 95.5% since the implementation of the cost recovery pricing mechanism in August 2022.
Under this mechanism, electricity prices have undergone multiple, often dramatic revisions:
- August 2022: +75%
- February 2023: +66%
- July 2023: –14%
- October 2023: +18%
- March 2024: –22%
- July 2024: –22.5%
- January 2025: –20%
- June 2025: +15%
The Public Utilities Commission of Sri Lanka (PUCSL) revealed that, according to provisional accounts submitted by the Ceylon Electricity Board (CEB) for the first quarter of 2025, the utility provider reported a financial loss of Rs. 18.4 billion.
The CEB’s latest tariff proposal designed to mitigate losses and balance operational costs includes a negative revenue adjustment of Rs. 8.2 billion for the period from June to December 2025.
CEB has projected electricity sales of 9,329 GWh during the same six-month period, aiming for a sales revenue of Rs. 230.7 billion.
The cost recovery model was introduced amid a broader effort by the Government to stabilise state-owned enterprises and reduce fiscal burdens.
While the strategy is intended to align consumer pricing with production costs, it has also attracted criticism for its impact on household affordability and industrial competitiveness.
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