By: Staff Writer
May 10, Colombo (LNW): Sri Lanka’s decision to increase electricity tariffs by 18 percent for higher-end consumers has sparked widespread political criticism, with opposition parties accusing authorities of masking operational failures and inflating financial losses linked to controversial coal imports and thermal power inefficiencies.
The tariff adjustment approved by the Public Utilities Commission of Sri Lanka takes effect from May 11 and targets consumers using more than 180 kilowatt-hours monthly. The increase follows another major revision introduced only weeks earlier, intensifying concerns over the country’s escalating energy costs.
The latest revision comes amid a growing dispute surrounding imported coal used for thermal electricity generation. Critics allege that lower-quality coal shipments significantly reduced operational efficiency at power plants, increasing fuel consumption while lowering energy output.
Opposition politicians argue that the resulting financial losses have been incorporated into electricity pricing formulas despite assurances from regulators that consumers would not bear the burden of procurement failures.
The controversy has already produced major political fallout, including the resignation of the Energy Minister last month following mounting criticism over fuel procurement decisions and energy sector management.
Regulators insist, however, that the majority of Sri Lankan households will not experience higher electricity bills. According to the Commission, approximately 95 percent of consumers fall below the high-consumption threshold affected by the latest revision.
Authorities also announced a government subsidy package worth approximately Rs. 18 billion aimed at cushioning the impact on lower and middle-income households while protecting vulnerable consumers from rising energy prices.
The tariff revision includes reduced charges for low-consumption domestic users, particularly within the first 60-unit consumption blocks. Religious institutions and charitable organizations will also receive lower tariffs to support their social welfare activities.
The Commission stated that it had directed the National System Operator not to transfer additional costs caused by coal shortages directly onto consumers. Instead, those expenses must be absorbed and settled separately with the Electricity Generating Company under regulatory supervision.
At the same time, authorities unveiled a new tariff framework for electric vehicle charging stations, introducing separate rates for off-peak, daytime, and peak usage periods as part of efforts to improve national grid management and encourage cleaner energy adoption.
Small and medium-sized enterprises and the tourism sector will also see revised demand charges designed to improve competitiveness and ease pressure on businesses already struggling with rising operational costs.
Despite these relief measures, critics continue questioning the transparency of the pricing process and the accuracy of operational cost calculations submitted to regulators.
Energy analysts warn that the recurring tariff hikes expose deeper structural weaknesses in Sri Lanka’s electricity sector, particularly the heavy dependence on imported fossil fuels and inconsistent procurement practices.
They caution that unless governance reforms and stronger accountability mechanisms are introduced, public confidence in the country’s energy management system may continue deteriorating while consumers remain vulnerable to future pricing shocks.