Sri Lanka hikes household power tariffs by 15%, Power regulator says

Sri Lanka will increase its household power tariffs by 15%, its power regulator said on Wednesday, a key step in the island nation's efforts to secure the next payout of a $2.9 billion programme with the International Monetary Fund (IMF).

Industries will have a hike of 20.5% while businesses in the tourism sector, a key foreign exchange earner for the island nation, will see their power prices rise by 20.2%, K.P.L. Chandralal, the chairman of the Public Utilities Commission of Sri Lanka, told reporters.

The revised tariffs will go into effect from midnight.


Sri Lanka's new government headed by President Anura Kumara Dissanayake reduced power prices by 20% in January, which raised cost recovery concerns for the country's power monopoly held by state-run Ceylon Electricity Board.

An increase in power tariffs was a key prior action for Sri Lanka to implement to secure board level approval for a fifth tranche of $344 million from the IMF.

Sri Lanka's economy crumpled under a severe foreign exchange crisis in 2022, but has rallied faster than expected, growing by 5% last year following a bailout from the global lender in March, 2023.