On 16 June 2025, the Cabinet of Ministers approved a new set of tariffs for solar power projects in Sri Lanka, as announced by the Ceylon Electricity Board (“CEB”). These reforms apply to all new rooftop, ground-mounted, and floating solar projects moving forward.
Compared to the previous regime, these rates represent a significant reduction, in some cases exceeding 20-40%, and will directly impact the revenues of projects and, by extension, their feasibility.
On August 4, Sri Lanka’s Court of Appeal is set to consider a petition filed by 17 solar power service providers challenging the Cabinet’s tariff reductions. A central argument in the petition is that this tariff reduction was enacted without the mandatory approval of the Public Utilities Commission of Sri Lanka (“PUCSL”), as stipulated by the Electricity Act.
The outcome of the case could have far-reaching implications for the enforceability of the revised tariffs, the authority of the PUCSL, and the overall stability of the regulatory framework governing renewable energy in Sri Lanka.
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