The Lanka Electricity Board’s fresh bid to raise electricity tariffs has reignited debate over IMF-driven reforms, consumer burdens, and the long-term future of Sri Lanka’s power sector.
The Lanka Electricity Board (CEB) has officially submitted its latest proposal for a tariff revision to the Public Utilities Commission of Sri Lanka (PUCSL), sources revealed to Sunday Morning.
A senior PUCSL official confirmed receipt of the request but refused to disclose details, while a CEB official confirmed that a 6.8 percent increase was proposed, still awaiting approval.
The request comes despite the CEB reporting a profit of Rs. 5.31 billion for the quarter ending June 30, 2025—a sharp turnaround from the Rs. 18.47 billion loss in the previous quarter. This improvement stemmed from tariff adjustments made in June. Yet, when compared with the Rs. 34.53 billion profit in the same quarter last year, the figure represents an 85 percent decline. Officials note that tariff reductions of 20 percent in January 2025 fueled earlier losses.
This cycle of adjustments is tied to the International Monetary Fund’s recommendation to reintroduce cost-based electricity pricing as part of conditions for Sri Lanka’s Extended Fund Facility.
The PUCSL has stated that CEB’s Q1 losses cannot be included in tariff calculations for June–December 2025. Instead, deficits or surpluses between January and June 2025 will be reconciled in the January–June 2026 period. Officials emphasized that no immediate financial burden is necessary, as the Rs. 51,098 million surplus from the first half of 2024 can cover the Q1 loss.
Additionally, the PUCSL dismissed a negative revenue adjustment of Rs. 8,283 million flagged by the Auditor General.
According to forecasts, the CEB expects electricity sales of 9,329 GWh between June and December 2025, generating Rs. 230,714 million in revenue. The majority—8,490 GWh valued at Rs. 210,673 million—will come from domestic consumers, while sales to Lanka Electricity Company (LECO) amount to 840 GWh or Rs. 20,040 million.
In June 2025, the PUCSL approved a 15 percent tariff hike effective from June 12, after trimming CEB’s original request for an 18.3 percent increase following public consultations. The proposed 6.8 percent revision marks the latest chapter in Sri Lanka’s ongoing struggle to balance IMF conditions, CEB’s financial stability, and consumer affordability.
