Sri Lanka’s Ceylon Electricity Board (CEB) has proposed a tariff increase of 11.57% to boost revenues and recover part of the losses incurred in the last quarter. This tariff adjustment, intended for the first quarter of 2026, takes into account various factors including fuel availability and prices, hydro inflows, plant maintenance schedules, energy demand, interest rates, transmission and distribution adjustments, and government policies, according to CEB.
In its proposal submitted to the Public Utilities Commission of Sri Lanka, CEB stated, “Based on the above analysis, a deficit of LKR 13,094 million has been estimated for the period from January to March 2026 requiring a tariff increase of 11.57%.” The utility also noted, “Any variations in the estimate, whether an excess or a shortfall, will be accounted for in the BSTA and considered in the next tariff revision.”
The proposed revision to the current tariff structure aims to ensure the financial and operational stability of the CEB and to mitigate potential risks to the reliability of electricity supply. The utility highlighted that the seasonal forecasts from the Department of Meteorology indicate no clear or consistent rainfall signal at the national level for January to March 2026. Consequently, hydropower inflows are expected to be near normal on average, though subject to considerable uncertainty and short-term variability.
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CEB further elaborated, “Overall, the January-March 2026 period does not point to a strong hydropower advantage, and dispatch was therefore prepared based on near-normal inflows, with a downside risk in major hydropower catchments.”
(Colombo/Jan2/2025)
