ECONOMYNEXT – Sri Lanka power regulator has approved power tariff hikes by about 18 percent for domestic consumers taking the energy charge for users above 180 units to 89 rupees while hotels and industry rates have been hiked by around 11 to 12 percent.
Market pricing energy is required under an International Monetary Fund program to stop the Ceylon Electricity Board from borrowing from state banks.
Domestic borrowings require higher market interest rates and when money is printed to maintain the central bank’s fixed policy rate the rupee collapses.
The central bank however in the past had busted the rupee with its fixed policy rate and triggered currency crises in the past private credit picked up, even when taxes were hiked to reduce the budget deficit and fuel was market priced.
In June electricity tariffs were cut. Sri Lanka electricity tariffs cut selectively, windfall for hotels
Domestic users will pay energy charges ranging from 38 to 89 rupees and fixed charges from 480 rupees to 2,360 rupees.
Religious customers will pay energy charges between 12 to 59 rupees (above 181 units) and fixed charges of 180 to 1,360 rupees.
Industries will pay rates of 20 rupees below 300 units to 28 rupees a unit above and fixed charged of 340 to 1,120 rupees.
Hotels will pay the same rate as industry.
General purpose and government will pay between 43 rupees a unit (below 180 rupees) to 56 rupees (above 180) rupees a hike of about 23 percent and fixed charges of 750 rupees to 1,860 rupees.
Increases were also approved for time of day tariffs.
Download the 20 OCT 2023 CEB-EN
A summary of old and new tariffs are given below:
(Colombo/Oct20/2023 – updated with summary increases and industry and hotels rate of 11-12-pct)