Topics
Explore
Featured Insight
Electricity Bills in Sri Lanka: Highest in South Asia
Sri Lankans pay 2.5 to 3 times more for electricity than South Asian neighbours In 2023, Sri Lanka revised its electricity charges three times in February, July and October. The stated basis for the increase, was to recover the full cost of providing electricity. This analysis compares the electricity charges on households in Sri Lanka in December 2023 with what households are paying in other South Asian countries. Two findings emerge that justify public concern on electricity bills in Sri Lanka: 1) Sri Lanka has the highest household electricity cost of any South Asian country (see Exhibit 1, comparing against the highest cost areas of supply in other countries). 2) Sri Lankan households are paying c. 2.5 to 3 times more for electricity than the average cost to their counterparts in South Asian countries (see Exhibit 2). A tariff decrease is planned in Feb 2024; this new structure would result in cost reduction in the electricity bill of around 4% or less. Therefore, it will not make a dent in Sri Lanka occupying the position of paying the highest prices for electricity in the region at a multiple of 2.5 to 3 times of what is paid by households in South Asia. The analysis is based on comparing households that consume between 100 to 300 units of electricity per month on single-phase lines (excluding any government taxation on electricity). Exhibit 2 shows that consuming 100 units in Sri Lanka costs LKR 5,280, while the average for South Asia is equivalent to LKR 2,078. Consuming 300 units in Sri Lanka costs LKR 21,860, while the average for South Asia is equivalent to LKR 7,340. Exhibit 1:
Featured Insight
Electricity Bills in Sri Lanka: Highest in South Asia
Sri Lankans pay 2.5 to 3 times more for electricity than South Asian neighbours In 2023, Sri Lanka revised its electricity charges three times in February, July and October. The stated basis for the increase, was to recover the full cost of providing electricity. This analysis compares the electricity charges on households in Sri Lanka in December 2023 with what households are paying in other South Asian countries. Two findings emerge that justify public concern on electricity bills in Sri Lanka: 1) Sri Lanka has the highest household electricity cost of any South Asian country (see Exhibit 1, comparing against the highest cost areas of supply in other countries). 2) Sri Lankan households are paying c. 2.5 to 3 times more for electricity than the average cost to their counterparts in South Asian countries (see Exhibit 2). A tariff decrease is planned in Feb 2024; this new structure would result in cost reduction in the electricity bill of around 4% or less. Therefore, it will not make a dent in Sri Lanka occupying the position of paying the highest prices for electricity in the region at a multiple of 2.5 to 3 times of what is paid by households in South Asia. The analysis is based on comparing households that consume between 100 to 300 units of electricity per month on single-phase lines (excluding any government taxation on electricity). Exhibit 2 shows that consuming 100 units in Sri Lanka costs LKR 5,280, while the average for South Asia is equivalent to LKR 2,078. Consuming 300 units in Sri Lanka costs LKR 21,860, while the average for South Asia is equivalent to LKR 7,340. Exhibit 1:
Featured Insight
Electricity Bills in Sri Lanka: Highest in South Asia
Sri Lankans pay 2.5 to 3 times more for electricity than South Asian neighbours In 2023, Sri Lanka revised its electricity charges three times in February, July and October. The stated basis for the increase, was to recover the full cost of providing electricity. This analysis compares the electricity charges on households in Sri Lanka in December 2023 with what households are paying in other South Asian countries. Two findings emerge that justify public concern on electricity bills in Sri Lanka: 1) Sri Lanka has the highest household electricity cost of any South Asian country (see Exhibit 1, comparing against the highest cost areas of supply in other countries). 2) Sri Lankan households are paying c. 2.5 to 3 times more for electricity than the average cost to their counterparts in South Asian countries (see Exhibit 2). A tariff decrease is planned in Feb 2024; this new structure would result in cost reduction in the electricity bill of around 4% or less. Therefore, it will not make a dent in Sri Lanka occupying the position of paying the highest prices for electricity in the region at a multiple of 2.5 to 3 times of what is paid by households in South Asia. The analysis is based on comparing households that consume between 100 to 300 units of electricity per month on single-phase lines (excluding any government taxation on electricity). Exhibit 2 shows that consuming 100 units in Sri Lanka costs LKR 5,280, while the average for South Asia is equivalent to LKR 2,078. Consuming 300 units in Sri Lanka costs LKR 21,860, while the average for South Asia is equivalent to LKR 7,340. Exhibit 1:
Featured Insight
Electricity Bills in Sri Lanka: Highest in South Asia
Sri Lankans pay 2.5 to 3 times more for electricity than South Asian neighbours In 2023, Sri Lanka revised its electricity charges three times in February, July and October. The stated basis for the increase, was to recover the full cost of providing electricity. This analysis compares the electricity charges on households in Sri Lanka in December 2023 with what households are paying in other South Asian countries. Two findings emerge that justify public concern on electricity bills in Sri Lanka: 1) Sri Lanka has the highest household electricity cost of any South Asian country (see Exhibit 1, comparing against the highest cost areas of supply in other countries). 2) Sri Lankan households are paying c. 2.5 to 3 times more for electricity than the average cost to their counterparts in South Asian countries (see Exhibit 2). A tariff decrease is planned in Feb 2024; this new structure would result in cost reduction in the electricity bill of around 4% or less. Therefore, it will not make a dent in Sri Lanka occupying the position of paying the highest prices for electricity in the region at a multiple of 2.5 to 3 times of what is paid by households in South Asia. The analysis is based on comparing households that consume between 100 to 300 units of electricity per month on single-phase lines (excluding any government taxation on electricity). Exhibit 2 shows that consuming 100 units in Sri Lanka costs LKR 5,280, while the average for South Asia is equivalent to LKR 2,078. Consuming 300 units in Sri Lanka costs LKR 21,860, while the average for South Asia is equivalent to LKR 7,340. Exhibit 1:
Data
Reports
Acts and Gazettes
Insights
Dashboards
Annual Budget Dashboard
Budget Promises
Fiscal Indicators
Fuel Price Tracker
IMF Tracker
Infrastructure Watch
PF Wire
About Us
EN
English
සිංහල
தமிழ்
;
Thank You
Free and Open Access to
Public Finance Data and Analysis
Home
PF Wire
PF Wire
Featured
IMF says new central Government taxes needed
The IMF recommends an imputed rental income tax on owner-occupied and vacant residential properties to boost central government revenue as part of essential tax reforms under the Extended Fund Facility (EFF) program.
2024-08-27
Daily FT
Read More
Filter By
Topic
Budget 2021
Budget 2022
Budget 2023
Budget 2024
International Monetary Fund
Articles
Revenue
Expenditure
Debt
Employee Provident Fund (EPF)
Financing
Agriculture and Irrigation
Civil Administration
Defence and Public Order
Education
Energy and Water Supply
Environment
Health
Social Protection and Welfare
Transport and Communication
Urban Development and Housing
New public procurement regulatory framework to deter corruption
Sri Lanka is set to implement a new Public Procurement Law aimed at curbing corruption and malpractices in the procurement process, responding to reports of inefficiencies and resource wastage highlighted by the Ministry of Finance, the Audi...
2024-03-31
The Sunday Times
Read More
Sri Lanka cuts super diesel by Rs72, Octane 95 by Rs7
The state-run Ceylon Petroleum Corporation (CPC) has implemented significant price reductions for fuel effective from midnight on March 31. Super diesel Euro 4 sees a substantial cut of 72 rupees per litre, now priced at 386 rupees, while pe...
2024-03-31
Economy Next
Read More
Sri Lanka trade deficit up 77-pct to Feb, imports surge, rupee appreciates
In February 2024, Sri Lanka experienced a significant widening of its trade deficit, which surged by 817 percent to $319 million compared to $39 million previously. This was accompanied by a notable 35 percent increase in imports, while merc...
2024-03-29
Economy Next
Read More
Cabinet nod to increase national minimum wage to Rs. 17,500
The Cabinet of Ministers in Sri Lanka has approved a proposal to increase the national minimum wage by Rs. 5,000. As a result, the minimum wage will rise from Rs. 12,500 to Rs. 17,500. This decision comes following a recommendation from a te...
2024-03-27
Daily Mirror
Read More
page
44
of
146
‹
1
2
...
44
...
145
146
›