The Ceylon Electricity Board (CEB) recorded a significant financial loss of Rs. 38.7 billion in 2025, despite multiple electricity tariff revisions during the year, according to the Central Bank’s Annual Economic Review 2025.

The CBSL review notes that although electricity tariffs were reduced several times in 2024 and further cut by an average of 20% in January 2025, the CEB’s financial performance was negatively impacted by higher generation costs. This was largely driven by increased thermal power generation during the first quarter amid dry weather conditions.

In an effort to offset accumulated losses, electricity tariffs were revised upward by 15% in June 2025. However, the adjustment was insufficient to recover costs, resulting in the reported loss of Rs. 38.7 billion by the end of the year.

As a result, CEB’s short-term liabilities and borrowings increased from Rs. 174.3 billion at the end of 2024 to Rs. 206.2 billion by the end of 2025. Long-term liabilities also rose slightly from Rs. 409 billion to Rs. 411.2 billion during the same period.

The Central Bank further stated that a new tariff revision has already been planned, with electricity prices expected to increase by 10.3% from April 2026, based on projected costs and revenue requirements for the second quarter.

Meanwhile, electricity demand continued to grow in line with overall economic activity in 2025, with total electricity sales rising by 5.8% year-on-year across all consumer categories.

Household demand, the largest consumer segment, showed strong growth from the second quarter onwards. However, disruptions caused by Cyclone Ditwah led to a temporary decline in demand across several categories towards the end of the year. Despite this, overall electricity consumption remained higher than the previous year, the CBSL noted.