The Ceylon Electricity Board (CEB) has submitted a proposal to the Public Utilities Commission of Sri Lanka (PUCSL) seeking a revision of electricity tariffs for 2026, including an 11.57% increase for the first quarter of the year.
According to the submission, the proposed hike is intended to cover an estimated deficit of LKR 13,094 million for the period from January to March 2026. The CEB stated that this shortfall necessitates an adjustment to the current tariff structure to maintain financial and operational stability.
The PUCSL said it will decide on the proposal after completing the required consultations and review process.
The CEB further noted that any variance between estimated and actual costs—whether surplus or deficit—will be addressed through the Bulk Supply Tariff Adjustment (BSTA) mechanism and taken into account during the next tariff revision.
In its proposal, the Board emphasized the need to mitigate risks to the reliability of the electricity supply and submitted its Board-approved tariff revision for the first quarter of 2026 for regulatory approval and implementation.
The CEB also highlighted the significant financial impact of Cyclone “Ditwah,” which caused damages estimated at around LKR 20 billion. Of this amount, approximately LKR 7,016.52 million is attributable to the first quarter of 2026, directly affecting electricity pricing.
However, the CEB cautioned that if external funding assistance is not secured to cover cyclone-related costs, the remaining expenditure may have to be recovered through electricity tariffs during the second quarter tariff revision of 2026.
