Former PUCSL Chief challenges CEB tariff hike proposal

Friday, 2 January 2026 00:26 - - {{hitsCtrl.values.hits}}

Former PUCSL Chairman Janaka Ratnayake

Former Public Utilities Commission of Sri Lanka (PUCSL) Chairman Janaka Ratnayake yesterday criticised the Ceylon Electricity Board’s (CEB) proposal to increase electricity tariffs in the first quarter of the year, questioning both its timing and justification.

Speaking to the media, Ratnayake said the proposed revision comes at a period of acute economic stress for households, noting that nearly 35% of the population is struggling to secure three meals a day in the aftermath of Cyclone Ditwah.

He said estimates by several institutions place the total damage caused by the cyclone at several billions of US dollars, while losses reported by the CEB alone pales in insignificance at around Rs. 20 billion.

Rathnayake said the CEB has justified the proposed tariff revision using GDP growth projections for 2026 issued by the International Monetary Fund (IMF), adding that the utility’s revenue for last year stood at approximately Rs. 470 billion.

He claimed the CEB is seeking to recover about 60% of its reported losses through the latest tariff adjustment, with around Rs. 7 billion expected to be passed on to electricity consumers over the next three months.

Describing the move as unfair, Ratnayake said the CEB appears to be attempting to transfer losses arising from a natural disaster directly to consumers. He argued that such losses should be absorbed by the Government, particularly as some affected areas are yet to have electricity supply fully restored.

He also pointed out that despite recent heavy rainfall, the CEB has reported generating around 60% of electricity from thermal sources rather than hydropower, further calling into question the basis for a tariff increase.

Ratnayake added that the proposal also seeks to abolish all concessionary tariff rates between 2026 and 2029, shift all consumers to a single flat-rate structure, and eliminate cross-subsidisation across consumer categories.