The country will increase electricity rates by up to 18% from today to offset the additional costs of generating power using thermal plants due to the Middle East conflict, the Public Utilities Commission said.
Consumers using more than 180 units (kilowatt hours) of electricity a month will have to pay an additional 18% from today, while those using less than that will not see their bills affected.
“The increase will apply to industries, hotels, businesses and government institutions and religious places of worship consuming more than 180 units a month,” the commission said in a statement yesterday.
The measure is the latest in a series of steps taken by the island nation following the conflict in the Middle East.
The latest hike comes on top of a 40% tariff increase introduced last month.
Sri Lanka has also raised fuel prices by more than 35% and rationed the same following energy supply disruptions.
Higher energy prices have pushed inflation to more than double, reaching 5.4% in April, according to official data.
Sri Lanka has been slowly emerging from the 2022 economic meltdown, when it ran out of foreign exchange reserves to pay for essential imports such as food, fuel and medicines.
It was hit hard by a cyclone last year that killed at least 643 people and affected more than 10% of its population of 22 million.
The storm caused an estimated US$4.1bil in direct physical damage to buildings and agriculture, according to the World Bank.
The country has been stabilising its fragile economy with the help of a US$2.9bil IMF bailout agreed in early 2023, but high energy prices have posed a serious challenge to recovery efforts. — AFP
