The Public Utilities Commission of Sri Lanka (PUCSL) has approved an 18% increase in electricity tariffs for the second and third quarters of 2026, which will come into effect from today (11), with the electricity regulator assuring the revision will not impact the vast majority of household users.
Announcing the decision on Saturday, PUCSL Chairman Prof. K.P.L. Chandralal said the tariff revision was finalised after reviewing cost estimates submitted by the National System Operator Ltd., (NSO) on 28 April, public feedback received during consultations, and the Government’s subsidy framework.
The NSO cited rising electricity generation costs due to higher fuel prices and an estimated revenue shortfall of around Rs. 38 billion for the current and upcoming quarters.
However, the PUCSL Chief affirmed that the revised pricing structure has been designed to ensure that 95% of electricity users will not face an increase, supported by a Rs. 15 billion Government subsidy extended to the NSO till end-September.
‘Under the new revised tariff plan, household consumers and places of religious worship using less than 180 units per month will see no increase in tariffs. Similarly, small and medium enterprises (SMEs) under the first subcategory of the industrial, hotel, and public bodies category will also be protected from higher rates,’ he told journalists.
Accordingly, the 18% tariff increase will apply to domestic and religious consumers exceeding 180 units per month, as well as selected categories under Government institutions, general purpose users, hotels, and industrial users.
Alongside the tariff revision, he said the Commission has issued a series of regulatory directives aimed at improving accountability and user protection within the power sector.
The PUCSL ordered the NSO not to pass on additional generation costs arising from coal shortages to consumers and directed the utility to submit monthly reports detailing such costs.
The Commission also announced plans for legal action over alleged violations of previous fuel procurement directives and said a public hearing will be held to improve transparency in fuel pricing for power generation.
Further directives require the NSO and generation and distribution companies, including Lanka Electricity Company (LECO), to finalise electricity purchase and supply agreements before 9 September.
The Commission also directed the power sector to revise its generation plan with the goal of eliminating dependence on imported liquid fossil fuels by 2030, while accelerating adoption of battery storage solutions at the consumer level.
The PUCSL said utilities that fail to submit accurate tariff-related data on time will not be allowed to recover resulting financial shortfalls from consumers, adding that any excess collections under future tariffs must be returned to electricity users rather than diverted for other expenditure.