The Ceylon Electricity Board (CEB) recorded an overall loss of Rs. 38.7 billion in 2025 despite tariff revisions implemented during the year, according to the Central Bank’s Annual Economic Review.
Electricity tariffs were revised downward by an average of 20% in January 2025 following earlier reductions in 2024, but higher thermal generation costs during the dry spell weighed on financial performance in the first quarter. A subsequent upward revision of 15% in June 2025 provided some relief, though it was insufficient to offset earlier losses.
CEB short-term borrowings and liabilities rose to Rs. 206.2 billion by end-2025 from Rs. 174.3 billion a year earlier. Long-term liabilities edged up to Rs. 411.2 billion from Rs. 409 billion. A further upward tariff revision of 10.3% took effect in April 2026 based on cost and revenue projections for the second quarter.
Electricity demand and generation both expanded by 5.8% during the year in line with the recovery in economic activity. Domestic consumption recorded stronger growth from the second quarter, although demand moderated towards the end of the year due to disruptions caused by Cyclone Ditwah.
Favourable hydropower conditions supported supply, with reservoir levels averaging 69.6%. The generation mix comprised hydro (35.5%), coal (27.4%), fuel (12.5%) and non-conventional renewable energy (24.7%). Rooftop solar installations nearly doubled during the year.
The Central Bank highlighted structural reforms including the Sri Lanka Electricity (Amendment) Act, No. 14 of 2025, and the restructuring of the CEB into four state-owned entities responsible for generation, transmission, distribution and system operations. The reforms are expected to improve governance and promote competition.
The figures reinforce the case behind the National System Operator’s pending Q2 tariff increase request, and contrast sharply with the Ceylon Petroleum Corporation’s Rs. 36.4 billion profit for the same year.
