The Public Utilities Commission of Sri Lanka (PUCSL) on Friday approved a revision of electricity tariffs for the second and third quarters of 2026, with increases ranging from 8% to 18% across consumer categories. Newswire confirmed on Saturday that the revised tariff structure will come into effect on Monday, May 11.
The Commission said there will be no tariff increase for the roughly 95% of household consumers using fewer than 180 units per month, and that religious institutions will also be exempt up to 180 units. Government institutions will see an average increase of around 11%, while small and medium-scale industries will be largely unaffected. Large-scale industries face increases of around 18%. Bills for households using 210 units and above will rise depending on usage.
The PUCSL said the decision was driven by an estimated Rs. 38 billion revenue deficit linked to higher fuel costs in the second and third quarters, partially offset by a written government commitment to provide a Rs. 15 billion subsidy that will remain in place until September 30.
The proposal had been filed by the National System Operator, the successor entity to Ceylon Electricity Board’s system operations, citing elevated fuel costs as the basis for cost recovery. The NSO had earlier filed a tariff shock submission seeking up to a 53% pass-through of fuel and coal-related costs, which the Commission narrowed sharply in today’s determination.
The PUCSL had earlier confirmed that losses attributed to inferior coal at the Lakvijaya Power Station, where it estimated 250 GWh in lost generation, would not be added to the tariff in this revision. The Commission has now formalised that ringfencing in a directive to the National System Operator: additional generation costs incurred due to the coal shortage are to be paid by the NSO to the Electricity Generating Company outside the tariff structure, with monthly reports submitted to PUCSL.
EconomyNext reported that the Commission also approved a downward revision of the fixed and energy charges for the first 30 units and the 31–60 unit blocks, lower tariffs for religious and charitable institutions, and a new time-of-use structure for electric-vehicle charging stations split into off-peak, day and peak rates. Demand charges for small and medium enterprises and the hotel sector were restructured to support competitiveness.
The decision follows the public consultation period that opened on May 6 and is the first special revision under the annual fuel-formula adjustment mechanism the Cabinet approved in April. It comes on top of a 25.3% increase that took effect on April 1.
Sources: Ada Derana, Newswire — decision, EconomyNext, Newswire — Monday implementation.
