• Worries about cost-reflective pricing being a public burden via electricity tariffs 

The Electricity Consumers’ Association (ECA) claimed that while more funds have been allocated for the power sector next year (in 2026) than this year, it will ultimately be consumers who have to bear the cost, as the Government continues to implement the International Monetary Fund (IMF)-recommended cost-reflective pricing system.

Speaking to The Daily Morning, ECA General Secretary Sanjeewa Dhammika opined that although an increased Budget allocation is usually a positive development, under the current IMF-driven economic policies, it would instead result in a burden on the public. “More money than was allocated for the power sector in the 2025 Budget has been allocated for the year 2026. In the end, this will have to be paid by the consumers,” he further claimed.

He noted that the IMF has made it clear that the Government cannot continue to subsidise electricity costs. “The IMF has continuously stated that the Government should not bear any portion of the cost of electricity. Then, larger allocations mean that ordinary people like us have to pay it back through electricity tariffs.”

Dhammika further claimed that while the restructuring of the power sector was initially introduced to reduce costs, the Government’s current actions are driving expenses higher. “Restructuring was meant to reduce costs. But now, the costs are increasing even more. If the Government bears this cost, there is no problem.”

The Government led by former President Ranil Wickremesinghe initiated a programme to restructure the power sector, including the proposal to divide the Ceylon Electricity Board into separate entities for generation, transmission, and distribution. The current administration has continued this process under the IMF’s conditions. It is expected that doing so will make the sector more efficient and financially sustainable.