Kathmandu. Colombo: Sri Lanka has decided to raise electricity tariffs by up to 18 per cent due to the impact of the war in the Middle East. According to the Public Utilities Commission, consumers consuming more than 180 units of electricity will have to pay 18 percent additional charge as per the new rate that will come into effect from Monday. Consumers who consume less than this will not be affected immediately.

According to a press release issued by the commission, this increase will apply to industries, hotels, businesses, government offices and religious institutions. The decision follows a series of energy increases over the past few months. Last month, the electricity tariff was increased by 40 percent.

The disruption in energy supplies has caused fuel prices to increase by more than 35 percent and have even imposed rationing in some areas. According to government data, inflation rose to 5.5 percent in April. It has reached 4 percent, which is a significant increase compared to the previous months. Sri Lanka went into a major economic crisis in 2022 due to a foreign exchange crisis, which severely affected imports of food, fuel and medicines.

The country was also hit hard by a major storm last year, which killed hundreds and caused extensive physical damage. The country has been trying to bring economic stability through the International Monetary Fund’s assistance program since 2023. But high energy prices and external crises are adding challenges to the recovery process.