Electricity tariffs to increase by 18 percent

10-May-2026

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The Public Utilities Commission of Sri Lanka has decided to implement a special electricity tariff revision from Monday, increasing rates by 18 percent for 2026, based on cost estimates submitted in April.

PUCSL Chairman Professor K.P.L. Chandralal announced this at a media briefing held on May 9.

He stated that the increase is due to rising global fuel prices, reduced hydro power generation caused by dry weather, and increased electricity demand due to high temperatures, resulting in a financial deficit of Rs. 38 billion in the sector.

A government subsidy of Rs. 15 billion has been used to minimise the impact on consumers. As a result, 95 percent of electricity users will not be affected.

Households and places of worship consuming less than 180 units per month will not face an increase. Similarly, small and medium industries, hotels, and certain public sector consumers will remain unaffected.

However, domestic users and religious institutions consuming over 180 units per month will face an 18 percent increase. Government institutions and larger commercial categories will also be affected.

Chandralal noted that the tariff revision is not linked to coal shortages, and said action will be taken regarding procurement irregularities in fuel purchases, including a public inquiry and legal steps against responsible officials.

He also stated that reforms will be introduced to move towards renewable energy targets by 2030 and ensure transparency in future procurement processes.