Sri Lanka to raise electricity tariffs by up to 18pc amid soaring energy costs linked to Middle East war
Sri Lanka will raise electricity tariffs by up to 18% for high-consumption users starting Monday, citing soaring energy costs linked to the Middle East war. The increase follows a 40% hike last month and coincides with fuel price hikes and rationing, straining the country’s economic recovery after a 2022 meltdown and a devastating cyclone last year.
Sri Lanka’s Public Utilities Commission announced an 18% increase in electricity tariffs for consumers using over 180 kilowatt hours per month, effective Monday. The hike targets industries, hotels, businesses, government institutions, and religious places of worship, as thermal power generation costs rise due to the Middle East war. This is the latest in a series of economic measures following the conflict, adding to a 40% tariff increase introduced last month. The government has also raised fuel prices by over 35% and imposed rationing amid energy supply disruptions, pushing inflation to 5.4% in April. Sri Lanka remains vulnerable after its 2022 economic crisis, which left it unable to import essential goods like food, fuel, and medicine. The country has been recovering with a US$2.9 billion IMF bailout secured in early 2023, but rising energy costs threaten progress. A cyclone last year killed at least 643 people and caused US$4.1 billion in damage, further straining resources. The government continues to balance recovery efforts against the financial burden of energy price adjustments.
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