CEB seeks 11.57% electricity tariff hike for Q1 2026

The Ceylon Electricity Board (CEB) has submitted a proposal to the Public Utilities Commission of Sri Lanka (PUCSL) requesting a revision of electricity tariffs for the year 2026.

In its submission, the CEB has indicated that an 11.57% increase in tariffs will be necessary in the first quarter of the year.

The PUCSL has stated that a decision on whether to approve the proposed increase will be made following due procedures and discussions.

According to the proposal, “a deficit of LKR 13,094 million has been estimated for the period from January to March 2026, requiring a tariff increase of 11.57%.”

The CEB further noted that any deviations from the estimate, whether an excess or a shortfall, will be addressed by the Bulk Supply Tariff Adjustment (BSTA) and considered in the next tariff revision.

Accordingly, to ensure financial and operational stability and to mitigate potential risks to the reliability of electricity supply, the CEB proposes a revision to the current tariff structure, as detailed in Annex II. The Board-approved tariff proposal for the first quarter of 2026 is hereby submitted to the Commission for its approval and subsequent implementation.

The CEB also highlighted the financial impact of Cyclone “Ditwah,” which caused an estimated LKR 20 billion in damages.

“Accordingly, the total financial impact of cyclone-related damages to the CEB is estimated at approximately LKR 20 billion, with the portion attributable to the first quarter of 2026 amounting to LKR 7,016.52 million, which has a direct implication on the electricity tariff.”

However, the CEB emphasized that, if external funding support is not secured, the expenditure incurred due to Cyclone “Ditwah” damages will need to be recovered through the electricity tariff in the second quarter tariff revision of 2026.

Click here for the full CEB proposal.