The Energy Ministry on February 12, 2026, published a 31-page draft National Energy Policy (NEP) on its website, inviting public views but providing less than five working days for submissions to be made.
The notice says that the formulation of the draft NEP has been completed in accordance with the provisions of the Sri Lanka Electricity Act and is published in all three languages for the public, stakeholders, and interested parties to send in writing comments and suggestions.
“All such comments and suggestions should reach the Ministry on or before 19.02.2026 at 12.00 noon…,” it adds.
However, there were “no newspaper advertisements, no public hearings announced, no discussion document, no officials going on media to explain the changes to the public, and no analysis of tariff policy impact — just silence”, energy sector analyst Vidhura Ralapanawe said, calling the process “a sham.”
Among other things, the policy reflects the legal unbundling of the state-owned Ceylon Electricity Board (CEB) into distinct, financially independent companies handling generation, transmission, system operations, and distribution.
To lower generation costs — which are the largest component of electricity costs — all new generation, including renewable energy, will be procured through open, competitive bidding.
The regulator will gradually shift to a performance-based framework, rewarding or penalising utilities based on their efficiency and service delivery.
Tariffs will be cost-reflective to ensure that generation, transmission, and distribution entities can remain financially viable and self-financed.
The policy acknowledges that the 2022 economic crisis made electricity unaffordable for many. However, instead of using cross-subsidies (where some consumers pay more to subsidise others), financial support for vulnerable, low-income households will gradually shift to direct budgetary allocations from the government.
The delivery systems will be heavily digitalised using smart meters, artificial intelligence, and blockchain. The policy also mandates the deployment of energy storage systems, such as batteries and pumped-storage hydropower, to manage the intermittent nature of renewable energy.
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