President Anura Kumara Dissanayake has said that electricity tariffs will be increased in June, citing the need for cost-reflective pricing in line with International Monetary Fund (IMF) recommendations.
Speaking on the Satana political program last night (2), he emphasized that the Treasury can no longer afford to subsidize the Ceylon Electricity Board (CEB). “Electricity must be priced according to actual production costs,” he stated.
While the government will continue offering targeted relief to vulnerable groups—such as the fishing community—through the Treasury, the President underscored the need for state-owned enterprises to operate commercially. “Just as the Ceylon Petroleum Corporation adjusts fuel prices based on actual costs, the CEB also must become financially sustainable,” he added.
Addressing speculation, President Dissanayake confirmed that the next tariff revision will take effect on June 1st. “This is not an election tactic. It’s a scheduled adjustment, guided by projections and the oversight of the Public Utilities Commission of Sri Lanka (PUCSL),” he said.
He also disclosed that the CEB had accumulated around Rs. 220 billion in debt, which has since been restructured. A portion of this will be reflected in the new tariff. “While there will be a slight increase, it will remain lower than the December 2024 rates,” he assured.
“We had to factor in part of the restructured debt into the tariff. Otherwise, the debt would keep growing, leading to the collapse of the CEB, power plants, and ultimately the country,” he warned.
Reaffirming the government’s commitment to protecting Sri Lanka’s energy sovereignty, President Dissanayake said it was integral to national security. “Without energy sovereignty, national security is already compromised. That’s why we halted efforts to privatize the CEB,” he added.
He also added even with the proposed increase still the electricity price will be lower than it was before September 2024. (Newswire)