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The government will reduce the tariff by 25 percent to religious places, government hospitals,schools, vocational training institutions and universities.
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Capital investment in expanding power generation and distribution is likely to exceed 64 billion rupees over the next two years, he said.
Recent investments have ensured continuous supply of electricity without power cuts and supply for almost the entire 20 million people in the country, Rajapaksa said.
The proposed rate hike in January 2011 will affect mainly those whose electricity consumption is heavy and not affect the majority of users, he said.