Sri Lanka currently holds the dubious distinction of having the highest electricity charges in South Asia, according to a recent analysis published on PublicFinance.lk, the country’s premier economic insights platform. The study conducted by Verité Research examined the electricity costs incurred by households consuming 100, 200, or 300 units at the beginning of 2024.
The findings underscore a stark reality, with Sri Lankan households paying 2.5 to 3 times more for electricity compared to the average charges in other South Asian countries. Notably, the analysis focused solely on supplier charges, excluding additional government taxes such as the Social Security Levy in Sri Lanka.
Even the second-highest electricity charges in the region, found in Pakistan, pale in comparison to Sri Lanka. For instance, households using 100 units face a 50% higher charge in Sri Lanka than in Pakistan, while those consuming 300 units are burdened with a staggering 97% higher cost.
The surge in Sri Lanka’s electricity charges aligns with a commitment made under its International Monetary Fund (IMF) program, where the Ceylon Electricity Board (CEB) aims to recover its full costs through a combination of consumer charges and potential subsidies from the Treasury.
While a marginal tariff decrease is slated for February 2024, offering a 4% reduction or less, experts argue that this adjustment is insufficient to make a meaningful impact. Consequently, Sri Lankan households are set to persist as the region’s highest payers for electricity, maintaining a significant disparity with their South Asian counterparts.
