Rs. 38 Bn Shortfall in Power Generation Costs; Taxpayers to Fund Rs. 15 Bn Govt Subsidy as PUCSL Opens Public Consultation

Sri Lanka’s Public Utilities Commission (PUCSL) has announced that rising fuel costs will create a Rs. 38 billion shortfall in electricity generation expenses for the second and third quarters of 2026.

To cushion households, the government will provide a Rs. 15 billion subsidy funded by taxpayers starting May 10, ensuring that 95% of domestic and religious consumers avoid higher bills.

State institutions, hotels, and common services consuming under 180 units monthly, as well as the industrial sector’s first subcategory, will also be spared from tariff hikes.

PUCSL further confirmed that additional costs linked to coal supply issues will not be passed on to consumers, though it remains unclear who will ultimately bear those expenses.

The revised cost estimates were submitted by the National System Operator (NSO) private limited on April 27, 2026, forming the basis for the proposed tariff changes.

At the same time, PUCSL has launched a public consultation on the proposed tariff changes. Written submissions are accepted until May 6, 2026, while a verbal hearing will be held the same day at the Bandaranaike International Conference Hall, Colombo.

Comments can be submitted via mail, email (consultation@pucsl.gov.lk), fax (0112392641), or WhatsApp (0764271030). The Commission has stated that all feedback will be considered before issuing its final decision on May 9, 2026.