Sri Lanka’s electricity sector enters 2026 with a proposed tariff adjustment from the Ceylon Electricity Board (CEB), submitted to the Public Utilities Commission of Sri Lanka (PUCSL) on December 24, 2025. The proposal outlines an overall 11.57% increase to address a projected revenue deficit of Rs. 13,094 million for January to March 2026. Based on verified data from the CEB Statistical Digest 2024 and the official proposal, this change would apply to energy unit rates and fixed charges while keeping the block-based system intact.
With domestic electricity sales at 4,701 GWh in 2024, electricity is integral to daily life. The average domestic user consumes 64 kWh monthly, or 771 kWh annually, at an average selling price of Rs. 36.01 per kWh. Per capita consumption stands at 693 kWh annually. These figures underscore how adjustments could influence budgeting and routines for millions of ordinary Sri Lankans.
This analysis, drawing exclusively from CEB and PUCSL sources, reviews the current structure, proposed changes, and their possible implications for everyday expenses and consumption habits.
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Current Domestic Electricity Tariff Framework
The existing tariffs, effective from the June 2025 revision, use a progressive block system to balance affordability for basic needs with higher rates for increased usage. This setup supports lower-income households by keeping initial blocks economical.
As per CEB data:
- 0-30 kWh: Rs. 4.50 per kWh, fixed charge Rs. 80.
- 31-60 kWh: Rs. 8.00 per kWh, fixed charge Rs. 210.
- 61-90 kWh: Rs. 18.50 per kWh, fixed charge Rs. 400.
- 91-120 kWh: Rs. 24.00 per kWh, fixed charge Rs. 1,000.
- 121-180 kWh: Rs. 41.00 per kWh, fixed charge Rs. 1,500.
- Above 180 kWh: Rs. 61.00 per kWh, fixed charge Rs. 2,100.
These rates generated Rs. 547,010 million in total billed revenue in 2024, with domestic sales comprising about 31% of the 15,191 GWh total energy sold. For the average 64 kWh user, bills typically fall between Rs. 500 and Rs. 1,200 monthly, covering essentials like lighting and fans.
Key Consumption Insights from CEB Statistics
The CEB Statistical Digest 2024 offers a snapshot of usage patterns. Electricity supports fundamental activities in homes across urban and rural areas. The 64 kWh monthly average aligns with modest needs: evening lights, ceiling fans, phone charging, and basic kitchen appliances.
Annually, this equates to 771 kWh per consumer, reflecting efficient habits amid economic considerations. Per capita usage of 693 kWh highlights Sri Lanka’s moderate demand compared to global averages, yet it remains vital for quality of life.
The Q1 2026 Tariff Adjustment Proposal
The CEB proposal, under review by PUCSL with public consultations starting after mid-January 2026, suggests proportional increases to unit rates and fixed charges. This aims to cover operational costs, including fuel, maintenance, and financial commitments, while ensuring grid stability.
Detailed proposed domestic rates include:
- 0-30 kWh: Rs. 5.29 per kWh, fixed charge Rs. 94.11.
- 31-60 kWh: Rs. 9.41 per kWh, fixed charge Rs. 247.03.
- 61-90 kWh: Rs. 21.76 per kWh, fixed charge Rs. 470.54.
- 91-120 kWh: Rs. 28.23 per kWh, fixed charge Rs. 1,176.35.
- 121-180 kWh: Rs. 48.23 per kWh, fixed charge Rs. 1,764.53.
- Above 180 kWh: Rs. 71.76 per kWh, fixed charge Rs. 2,470.34.
Any over- or under-recovery will adjust via the Bulk Supply Transaction Account in future reviews.
This structure preserves progressivity, protecting low-usage users while scaling for higher consumption.
Potential Shifts in Household Budgeting
Electricity bills often rank among top monthly expenses for Sri Lankan families, alongside food and transport. For the average 64 kWh consumer, current bills might range from Rs. 600 to Rs. 1,000. If approved, the 11.57% adjustment could add Rs. 70-120 monthly, or Rs. 210-360 over the quarter.
Lower-usage households (under 60 kWh), common in rural settings or among smaller families, might see increments of Rs. 50-100. This could prompt reallocating funds from other areas, like groceries or savings, to maintain essential power use. Urban middle-income users (90-120 kWh), with refrigerators or computers, may face Rs. 150-250 more, influencing decisions on non-essentials.
Over time, these changes could encourage budgeting apps or meter monitoring, helping families track and optimize spending.
Influences on Daily Household Routines
Daily activities rely on consistent electricity access. Mornings involve water heating or cooking, while evenings use lights and fans for comfort. A rate increase might lead to mindful adjustments, such as using natural light longer or batching appliance tasks.
In warmer weather, fans provide relief, but higher costs could mean shorter run times, affecting rest or productivity. Kitchen habits, like electric rice cookers, remain key, yet users might consolidate meals to save units. Rural homes, often with lower consumption, could adapt by prioritizing evening family time under fewer lights.
Overall, these shifts promote energy-aware lifestyles.
Impacts on Productivity and Home-Based Work
Many Sri Lankans use electricity for income-generating activities at home, such as sewing machines or online tasks. At 64 kWh average, a modest rise might affect hours of operation, leading to scheduled use during cheaper periods.
Small vendors refrigerating goods or lighting stalls could adjust inventory or hours, impacting earnings. However, the progressive system ensures basic productivity remains accessible.
Community Responses and Adaptation Strategies
Communities often exchange tips on conservation, like LED bulbs or shared charging. The proposal could amplify such discussions, fostering collective efficiency.
Guidance for Managing Potential Changes
Families can use CEB’s online calculators to estimate bills under new rates. Opting for efficient appliances offers savings. Staying engaged in PUCSL consultations allows input on final decisions.
In summary, the proposed 11.57% adjustment, while addressing sector needs, could introduce minor pressures on household finances and habits. For Sri Lankans, electricity facilitates daily progress, and these changes highlight opportunities for efficient use amid evolving demands.
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