Energy costs bite as plantations brace for tariff increase

Sri Lanka’s plantation industry has warned that a proposed electricity tariff increase could erode export competitiveness and strain already elevated production costs, urging regulators to adopt a more targeted and sustainable pricing framework.

The Planters’ Association of Ceylon (PA) this week said the sector faces “severe economic strain” from high electricity tariffs, as public consultations begin on the Ceylon Electricity Board (CEB) proposal to raise tariffs by 13.6 percent in the second quarter of 2026. The move follows the Public Utilities Commission of Sri Lanka (PUCSL) rejecting an earlier hike for the first quarter on procedural grounds.

Industry officials cautioned that the delayed adjustment could trigger a sharp “price cliff” in April, as the utility seeks to recover losses, amplifying cost pressures on export sectors.

While plantation crops require limited energy at the cultivation stage, processing—particularly in tea and rubber—depends on continuous, energy-intensive factory operations.  Contd. Page 09