- Notes that the same is laid down in the Electricity Act of 2009 and proven by CEB’s income/profit over op. costs
In the wake of the International Monetary Fund's (IMF) call for Sri Lanka to restore cost-recovery electricity pricing, the Public Utilities Commission of Sri Lanka (PUCSL) stated that it is such a tariff system that is already in place.
Speaking during a virtual media briefing on 29 April, the IMF's Sri Lanka Mission Chief Evan Papageorgiou said that Sri Lanka should restore cost-recovery electricity pricing as soon as possible to minimise the fiscal risk, and that such is essential to complete the fourth review of the Extended Fund Facility (EFF) programme.
When contacted by The Daily Morning, the PUCSL's Director - Corporate Communications, Jayanat Herat said that it is such a cost-reflective electricity tariff system that is already in place. "The Sri Lanka Electricity Act, No. 20 of 2009 introduced a cost-reflective tariff system as a legal requirement. Since then, a methodology has been developed to determine electricity tariffs so as to recover the costs. No need to introduce such a system anew as it is already in place."
He also said that the Ceylon Electricity Board (CEB) has, at times, earned profits exceeding its operational costs. "For example, the CEB earned Rs. 120 billion last year (in 2024) and Rs. 60 billion the year before (in 2023). In January of this year (2025), it recorded a profit of Rs. 3 billion. This shows that their income has exceeded costs. What we have in place now is a cost-reflective tariff system. It is laid down in the law, and we are working in accordance with that law," Herat said.
Attempts to contact the Energy Ministry's Secretary, Dr. Udayanga Hemapala and the CEB Chairperson Dr. Tilak Siyambalapitiya proved futile.
During the said briefing, Papageorgiou said that final Executive Board approval of the staff-level agreement would depend on Sri Lanka implementing key prior actions — including restoring cost-reflective electricity pricing, and confirming multilateral financing contributions and debt restructuring progress. If these conditions are met and the review is approved, Sri Lanka is to receive approximately United States Dollars ($) 344 million in the next tranche of IMF support, bringing the total disbursed so far to around $ 1.72 billion.