World Business Report Why Sri Lanka is raising electricity prices for most households
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Mar 31, 2026 Discussion of Sri Lanka raising household electricity prices amid surging fuel costs. The impact of higher jet fuel on airlines, capacity cuts and fares. A $16bn tie-up combining major food-seasoning and spreads businesses. Plans to repurpose North Sea oil fields for carbon storage and the debates around its risks and benefits.
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Sri Lanka Hikes Power Prices Amid Fuel Shortage
- Sri Lanka raised household electricity prices by 7–10% and 25% for heavy users as fuel costs surge due to the Iran conflict.
- Colombo faces $600m of fuel imports for April and is seeking emergency supplies from Russia, India and the US, straining reserves.
Refinery Strain Forces Rationing And Conservation Steps
- The country is struggling to keep its only refinery running, putting power plants at risk and forcing rationing measures.
- Government ordered offices to turn off aircon at 3pm, switch off streetlights for four hours and declared Wednesday a public holiday to cut consumption.
Limited Financial Buffer Raises Risk Of More Hikes
- Rising fuel import bills and a hit to tourism mean Sri Lanka has little buffer for further shocks.
- The government warns more tariff hikes could follow if global energy prices continue to rise.