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Government Relief Allocation
Financial allocation for electricity relief over a 3-month period.
Primary Sources
Electricity tariff hike, NPP promises and ill-advised moves
The Public Utilities Commission of Sri Lanka (PUCSL) granted approval to increase electricity tariffs by 10% overall, with effect from yesterday for the second quarter of this year. As per the IMF Standby Agreement, electricity tariffs need to be revised periodically to maintain a cost-recovery pricing model and ensure the financial viability of the CEB. For the financial year 2025, the CEB incurred a loss of Rs. 38.7 billion, compared to a profit of Rs. 141.6 billion during 2024. Before coming into power, NPP politicians vowed to bring down electricity charges while slamming the then Government for hiking energy bills to overcome financial pressures caused by escalations in both direct and indirect costs. During the Presidential election campaign, Anura Kumara Dissanayake, who was an Opposition MP at the time, declared that electricity bills would be reduced by one-third under an NPP-led administration. The then Presidential candidate claimed that electricity bills could be reduced by eliminating theft, reviving the LNG-powered power plant system, and prioritising renewable energy. Moreover, JVP/NPP politicians were able to convince voters that electricity bills were raised by previous administrations due to fraud and various corrupt activities.Aggravating the chaotic situation in the energy sector, reduced hydropower generation owing to the prevailing dry season has necessitated increased power generation from comparatively expensive sources such as coal and fuel to ensure an uninterrupted power supply. However, as a result of low-quality coal purchased by the CEB for the Norochcholai Lakvijaya Power Plant, the country’s largest coal-fired facility with a capacity of 900 MW, in late 2025 and early this year, the generation capacity of the plant has declined, and the PUCSL has warned of a possibility of power cuts. To compound matters, the prevailing instability in the Middle East has created doubts about the ability to source fuel from the world market, as the Strait of Hormuz—an essential and largely irreplaceable conduit for oil exports from the Middle East to global markets—remains effectively closed, causing uncertainty over the availability as well as the adequacy of fuel for electricity generation. Right from the beginning, decisions made by the Government in relation to the electricity sector, in terms of policy choices and key personnel appointments, were slammed by industry experts. Upon assuming power, the administration appointed Dr. Tilak Siy...
Power crisis looms: Govt. blames West Asian conflict, opposition flags ...
The team met President Dissanayake at the Presidential Secretariat on Thursday. A PMD statement issued after the meeting quoted President Dissanayake as telling the IMF delegation that Sri Lanka has met all targets set under the EFF programme and has reached a position of relative stability.
Sri Lanka struggles to avert economic collapse over Mideast war
President Anura Kumara Dissanayake has rationed fuel, raised its price by a third and increased electricity costs by up to 40 percent since the war in the Middle East began.
Sri Lanka struggles to avert economic collapse over Mideast war
President Anura Kumara Dissanayake has rationed fuel, raised its price by a third and increased electricity costs by up to 40 percent since the war began disrupting global energy supplies.
