The Sri Lankan government reiterated that it intends to bring down electricity tariffs over the next three years by lowering power generation costs, local media reported.

Anil Jayantha Fernando, labour and deputy finance minister, said electricity pricing remained tied to a cost-recovery framework, meaning that end-user tariffs reflect underlying generation expenses.

He said the administration’s priority is to address those cost drivers over the medium term rather than rely solely on periodic tariff changes.

Temporary fluctuations in power tariffs might occur, Mr Fernando said, noting that shifts in the country’s energy mix could directly affect production costs and, in turn, retail prices.

Mr Fernando said a policy mechanism is already in place to shield low-income households and specific categories, such as religious institutions, by offering electricity at rates below actual generation costs.

The remarks were made as Sri Lanka’s state-owned utility Ceylon Electricity Board awaits regulatory review of its latest quarterly tariff proposal.

The utility has requested a 13.56 per cent increase for the April to June 2026 period  in a submission to the Public Utilities Commission of Sri Lanka. 

(Xinhua/NAN)