Colombo – June 13, 2025 — The Sri Lankan government has announced a comprehensive reform of its electricity pricing model, aiming to address months of public outcry and confusion caused by erratic electricity tariffs.
Unpredictable Tariffs Spark Public Backlash
Over the past year, households and businesses across Sri Lanka have been burdened by steep and inconsistent electricity bills. The existing pricing system, introduced to adjust for fluctuating energy production costs, resulted in chaotic electricity tariffs that varied unpredictably between billing cycles. The lack of clarity and sudden price hikes triggered widespread public dissatisfaction, with protests erupting in various parts of the country and criticism mounting over the government’s handling of the issue.
Government Promises Transparent and Fair Reform
In response to growing frustration, the Ministry of Power and Energy, together with the Public Utilities Commission of Sri Lanka (PUCSL), has announced plans to overhaul the current electricity pricing method. The government says the new model will prioritize fairness, stability, and transparency, ensuring that consumers are no longer caught off guard by unexpected charges.
A spokesperson from the Ministry emphasized that this reform is essential not only for consumer protection but also for the long-term sustainability of Sri Lanka’s power sector. The goal is to replace the erratic tariff system with one that reflects true usage patterns and production costs, while minimizing disruptions to household budgets and business operations.
Key Features of the Planned Overhaul
Although the details of the new pricing structure are still under development, officials have hinted at a tiered tariff system that adjusts rates based on consumption levels. They also noted the possibility of targeted subsidies for low-income households, as well as incentives to encourage energy efficiency and the adoption of renewable technologies such as solar power. The revised structure is expected to undergo regular reviews to ensure price stability and avoid abrupt changes.
Experts Urge Careful Implementation
Policy analysts and energy sector experts have cautiously welcomed the announcement, while also warning that successful implementation will require clear communication, robust oversight, and thorough public consultation. One energy economist noted that resolving issues with electricity tariffs involves more than a mathematical recalculation—it requires regaining public trust and building a resilient, transparent system that serves both consumers and the economy.
Revised Tariff Structure Expected by Year-End
According to the Ministry, the reform process will involve multiple stages, including technical assessments and stakeholder engagement. The government aims to finalize and begin rolling out the new electricity pricing model before the end of 2025. If successful, this overhaul could mark a turning point in Sri Lanka’s energy policy, restoring confidence in a sector that has faced growing scrutiny and dissatisfaction.