Power Tariff Hike Is Legal, Not Political - Dep. Minister

COLOMBO (News 1st); Deputy Minister of Finance, Dr. Harshana Suriyapperuma, clarified that the recent adjustments to electricity tariffs are not politically motivated but are mandated by the Electricity Act under a cost-reflective pricing mechanism.

Speaking to the media, Dr. Suriyapperuma explained that while electricity tariffs were reduced earlier this year, the current revisions are necessary to align with actual production and distribution costs. He emphasized that the pricing mechanism is based on legal requirements and not a policy imposed by the current administration.

“These adjustments are not arbitrary. They are part of a legally binding framework that ensures electricity prices reflect the real costs of generation, transmission, and distribution,” he said.

The Deputy Minister acknowledged that the changes may have a financial impact on consumers, with an estimated increase of around 15%. However, he noted that the government has already taken steps to reduce the financial burden on the public and businesses by significantly lowering finance costs.

“Interest rates, which were once above 30%, have now dropped below 10%, with the Average Weighted Prime Lending Rate (AWPLR) falling to around 8%. This has eased the financial pressure on industries and households alike,” he added.

Dr. Suriyapperuma also highlighted that the government continues to support economic productivity by offering relief across multiple cost dimensions, including energy and finance, while ensuring compliance with national laws and fiscal responsibility.