The Ministry of Power and Energy announced yesterday that electricity tariffs will remain unchanged for the first half of 2025, a move made possible by financial management measures aimed at offsetting anticipated revenue shortfalls.
During a media briefing held by the Government Information Department, Power Sector Reform Secretariat Director General Eng. Pubudu Niroshan outlined the financial implications of maintaining the current tariff structure. He revealed that the Ceylon Electricity Board (CEB) expects a revenue shortfall of Rs. 39 billion in the first half of 2025, as the projected cost of electricity during this period is Rs. 268 billion, while the current tariffs are expected to generate Rs. 229 billion.
“To bridge this gap, the CEB will rely on profits from this year’s earnings,” Niroshan stated, adding that no changes in tariffs—neither increases nor decreases—will be implemented during the first six months of 2025.
Addressing claims of significant profits by the CEB last year, he clarified that Rs. 112 billion in additional revenue had been used to settle pre-existing loans. For 2024, the CEB anticipates generating Rs. 41 billion in additional income, which will be used to cover the Rs. 39 billion deficit projected for the first half of 2025.
“This financial management strategy enables us to avoid a tariff revision for the first half of 2025,” he affirmed.
The decision underscores the government’s commitment to maintaining tariff stability while managing financial challenges within the energy sector. Further updates on the tariff structure for the latter half of 2025 are expected based on a review of the financial performance and energy market dynamics.