Following reports that the Ceylon Electricity Board (CEB) had recorded a profit of Rs. 5.31 billion for the quarter ending on 30 June of this year, the Public Utilities Commission of Sri Lanka (PUCSL) stated that the benefit of that profit would have to be passed on to consumers in the next tariff revision.

Speaking to The Daily Morning, PUCSL Director – Communication Jayanat Herat said that electricity tariffs must remain cost-based, with no room for either profit or loss. 

“If there is a profit, it should be deducted from the remaining expenses, and if there is a loss, that loss is carried over to the remaining expenses. Now that there is a profit, it should be deducted from the expenses and the people should get the benefit of it in the next tariff revision,” he said.

The CEB’s return to profitability marks a sharp turnaround from the Rs. 18.47 billion loss recorded in the previous quarter ending on 31 March 2025. Analysts have linked this recovery to the tariff revision implemented in June 2025. However, the latest earnings are down 85% compared to the Rs. 34.53 billion profit reported in the same quarter of last year (2024).

The CEB’s financial performance has been closely tied to changes in electricity tariffs. After the present Government assumed office, tariffs were reduced by about 20% in January 2025. The International Monetary Fund has repeatedly urged Sri Lanka to restore cost-reflective electricity pricing as a condition for securing the respective tranches of its Extended Fund Facility. The June tariff hike was reportedly made in line with that requirement.