Consumers See Minimal Relief, While CEB Faces Mounting Financial Losses
Electricity Prices Surge Despite Revisions
Sri Lanka’s electricity tariffs remain approximately 96% higher on average than they were in August 2022, even after several reductions aimed at easing costs for consumers. This rise began when the Government introduced a cost recovery mechanism in 2022 to stabilize the financial position of the energy sector. According to a report from the Central Bank’s Department of Economic Research, the most recent 15% tariff increase in June 2025 brought the total cumulative increase to 95.5% since the initial rate hike.
Since the policy’s implementation, electricity prices have seen significant fluctuations. Following a 75% increase in August 2022 and a 66% hike in February 2023, consumers experienced limited relief through reductions in July 2023, March 2024, July 2024, and January 2025. However, these cuts have been largely offset by new increases, including the latest one in June 2025. A household using 90 kWh of electricity per month now pays Rs. 1,720—just Rs. 80 less than the Rs. 1,800 bill in August 2022.
CEB Struggles with Financial Losses
While consumers face stubbornly high bills, the Ceylon Electricity Board (CEB) is grappling with major financial challenges. According to provisional accounts submitted to the Public Utilities Commission of Sri Lanka (PUCSL), the CEB recorded a loss of Rs. 18.4 billion during the first quarter of 2025. To mitigate this, it has proposed a negative revenue adjustment of Rs. 8.2 billion for the period between June and December 2025.
In addition, the CEB has forecast electricity sales of 9,329 GWh for the second half of the year, expecting to earn Rs. 230.7 billion in revenue. However, given the scale of its losses, these projections have raised concerns about the long-term viability of the state-run utility.
The Road Ahead for Electricity Pricing
The current pricing dilemma reveals the tension between achieving cost recovery and ensuring electricity affordability. While the tariff structure aims to reflect real costs and improve energy sector sustainability, the limited relief seen by average consumers after multiple revisions highlights an ongoing struggle. Without further structural reforms, financial support for the vulnerable, or improved efficiency in energy management, electricity pricing in Sri Lanka is likely to remain both a public concern and a fiscal challenge.