Sri Lankans are bracing for another surge in electricity tariffs as the Ceylon Electricity Board (CEB) seeks a fresh hike of 6.8 percent. With households and small businesses already struggling under the weight of high living costs, this new proposal has ignited fears of even greater economic pressure. Will this move stabilize the nation’s power sector, or plunge families deeper into financial distress?
The Ceylon Electricity Board has officially proposed another electricity tariff hike for 2025, sparking concerns across the island. The proposal, signed by the CEB’s General Manager, Engineer Wasantha Edirisuriya, has been submitted to the Public Utilities Commission of Sri Lanka (PUCSL). It requests approval for a 6.8 percent increase for the last quarter of the year, citing mounting financial shortfalls.
In its submission, the CEB stated, “A deficit of Rs. 17,694 million has been estimated for the period from October to December 2025, requiring a tariff increase of 6.8 percent, and any variation in the estimate, whether surplus or deficit, will be accounted for in the BSTA and considered in the tariff revision.” This correction clarifies earlier figures that were misquoted, ensuring accuracy in the debate.
Why is another tariff hike being requested?
The CEB insists the new hike is essential to maintain financial and operational stability in the electricity sector. Officials argue that the proposed increase is necessary to prevent risks that could undermine the reliability of Sri Lanka’s electricity supply.
A detailed expenditure report covering the final quarter of 2025 was submitted to the PUCSL, outlining costs that include fuel imports, hydropower capacity, plant maintenance, energy demand, interest rates, and economic recovery factors. The CEB stressed that global fuel price fluctuations, lower-than-expected hydropower inflows, and rising demand for electricity have further strained finances.
The board also highlighted additional elements such as actual BST reconciliations from past quarters, transmission and distribution revenue adjustments, and government policies that influence tariff structuring.
How did electricity tariffs change in 2025?
This is the second time within the year that tariff changes have been proposed. Initially, the CEB had recommended keeping tariffs steady for the first half of 2025. However, the PUCSL intervened with a counter-proposal, reducing electricity prices by 20 percent starting in January.
The reduction was initially welcomed by consumers but soon proved unsustainable. The CEB reported a staggering Rs. 18 billion loss in the first quarter alone, between January and March, due to the tariff cut. To address this, the CEB pushed for an 18.3 percent increase covering June to December 2025.
After reviewing the proposal and consulting the public, the PUCSL approved a smaller increase of 15 percent. Now, with mounting losses persisting, the CEB has returned to request an additional 6.8 percent hike to offset deficits in the last quarter.
What do ordinary citizens say?
The tariff hike debate has sparked outrage among citizens who already feel crushed by rising costs of living.
Krishan Anjana, who runs a mobile phone repair shop, told BBC Sinhala that his livelihood is at stake. “Our AC works, about 95 percent of the working tools work with current, so this affects our cost, and at the same time, our profit decreases,” he said. Krishan explained that his bill had soared from around Rs. 8,000 four years ago to nearly Rs. 32,000 today. He fears further hikes will cripple his business.
Housewife and batik designer Deshani Boteju shared similar concerns. She said, “Most of the things we use at home are electric. We cannot stop using them, so the increase in electricity bills has an economic impact. Having to pay more of our income on the current bill is a big problem.”
She explained how her batik business, which requires heavy use of water motors and sewing machines, would be directly affected. “Because I do batik, I use a lot of water, the water motor uses a lot. When I let them sew, the charges also increase. Then the problem is that we cannot tell the consumer how much, and our profits decrease.”
Deshani also warned that higher electricity rates would push up the prices of other goods and services, worsening daily living conditions.
When will the decision be made?
According to PUCSL Communications Director Jayanath Herath, a final decision is expected around mid-October. “It is difficult to say a specific date, but the final decision will be announced around mid-October, the second or third week,” he said.
The PUCSL has already launched a public consultation process, inviting citizens to submit written comments and suggestions by email or WhatsApp before October 7, 2025.
In addition, nine public hearings will be conducted across all provinces to gather oral feedback. The first session is scheduled to begin in Trincomalee on September 18, covering the Eastern Province, with sessions continuing until October 3.
Herath confirmed that the Commission will consider all submissions before making its final decision. “There are nine oral comment sessions covering all nine provinces. The final decision on the matter is planned to be announced by the Commission in October after considering the suggestions and comments received.”
The bigger picture
Sri Lanka’s electricity sector remains under heavy financial strain, worsened by fluctuating global fuel costs, rising domestic demand, and heavy infrastructure costs. The CEB argues that tariff hikes are necessary to avoid further deficits, yet consumers believe the board has failed to control inefficiencies and mismanagement.
The balance between financial stability and public affordability remains delicate. If approved, this second tariff increase in 2025 will fuel debate on whether the CEB’s approach is fair to citizens already burdened by inflation, higher taxes, and reduced household purchasing power.
With businesses warning of reduced profitability, households fearing higher bills, and the government caught between financial necessity and public anger, the coming decision by the PUCSL will be one of the most scrutinized regulatory rulings of the year.
