The Public Utilities Commission of Sri Lanka (PUCSL) concluded its public consultation on Monday, May 6th, regarding a proposed electricity tariff hike of approximately 20% for the second and third quarters of 2026. The National System Operator (NSO) submitted this 'Revised Electricity Generation Cost Estimate' on April 27th, citing a projected financial deficit of Rs. 38 billion and rising international fuel prices as key drivers for the increase.
The NSO's proposal, which specifically requested an 18% tariff hike, aims to cover increased electricity generation costs for the period from April to September 2026. This new proposal follows an earlier attempt by the NSO to implement a 15% tariff increase for the second quarter of 2024, which the PUCSL halted due to concerns over a 10% tariff hike already implemented on April 1st.
To mitigate the impact on consumers, the Treasury has committed a Rs. 15 billion subsidy. The PUCSL has indicated that this substantial subsidy could mean that 95% of consumers will not require a tariff increase, even if the proposed hike is approved. This government subsidy is expected to be provided to consumers starting May 10th.
The public consultation process for the 2026 special electricity tariff revision commenced on April 29th, with the PUCSL accepting written submissions until May 6th. The main public consultation event took place on May 6th, from 08:30 AM to 03:00 PM, at the Bandaranaike Memorial International Conference Hall (BMICH) in Colombo, where the commission accepted both written and oral submissions from the public.
Following the conclusion of these consultations, the PUCSL is now expected to announce its decision regarding the proposed electricity tariff revision on Saturday, May 10th.