Analysis reveals SL bears highest household electricity charges in South Asia
February 08, Colombo (LNW): A recent analysis published on PublicFinance.lk, a leading economic insights platform in Sri Lanka, conducted by Verité Research, sheds light on the substantial electricity charges borne by households in the country.
The study compared electricity charges for households consuming 100, 200, or 300 units, drawing comparisons with other South Asian nations at the onset of 2024.
The analysis highlights that Sri Lanka stands out with the highest electricity charges in the South Asian region, significantly surpassing rates in neighboring countries.
Notably, households in Sri Lanka are paying 2.5 to 3 times more for electricity compared to the average prices in other South Asian nations.
The calculation focused solely on charges imposed by electricity suppliers and excluded government taxes like the Social Security Levy, which is an additional expense for consumers in Sri Lanka.
Among South Asian countries, Pakistan registers as the second-highest in terms of household electricity charges, yet the rates remain considerably lower than those in Sri Lanka.
For instance, households consuming 100 units face charges that are 50 per cent higher in Sri Lanka than in Pakistan, while those consuming 300 units encounter a staggering 97 per cent increase in charges in Sri Lanka.
The escalation in electricity charges in Sri Lanka is attributed to commitments made under the International Monetary Fund (IMF) programme, which stipulates that the Ceylon Electricity Board (CEB) must recover its full operational costs from consumer charges and any subsidies provided by the Treasury.
Despite an anticipated tariff reduction slated for February 2024, projected to lower electricity charges by up to 4 per cent, experts argue that the impact of this decrease will be marginal.
Consequently, Sri Lankan households are expected to persist with the highest electricity prices in the South Asian region, significantly surpassing those of neighbouring countries.