Sri Lanka will increase electricity tariffs by 15% starting June 12, the Public Utilities Commission of Sri Lanka (PUCSL) announced on Tuesday. The hike comes just six months after a 20% tariff cut in December 2024.
The PUCSL attributed the latest increase to mounting operational expenses and the need to service debts. The commission noted that higher costs in power generation and distribution have made the revision necessary to maintain financial sustainability in the energy sector.
The International Monetary Fund (IMF), in its recent review of Sri Lanka’s economic recovery under the $2.9 billion bailout package, had urged the government to adopt cost-reflective pricing in critical sectors, including energy.
December’s tariff reduction came amid easing inflation and improved hydropower availability, providing temporary relief to consumers. However, the government now faces renewed pressure to align utility prices with actual costs as part of broader fiscal reforms.
Sri Lanka continues to implement tough economic measures under the IMF program aimed at stabilizing its crisis-hit economy and restoring debt sustainability.