⚡ No Electricity Tariff Increase for 4Q 2026: NSO Withdraws Request

• Overview: The National System Operator Ltd. (NSO) has officially withdrawn its request for an electricity tariff hike for the final quarter (October–December) of 2026. • Proposal Revision: NSO initially sought a 2.88% tariff increase to cover a projected revenue shortfall of Rs. 4.4 Bn. Following a preliminary review, the Public Utilities Commission of Sri Lanka (PUCSL) slashed the proposed increase to 1.46% before public consultations took place. • Key Drivers: NSO reversed its decision citing strong current reservoir storage levels and meteorological forecasts predicting above-normal rainfall under current El Niño conditions. • Economic & Sector Impact: High reservoir storage allows for maximized hydroelectric power generation, significantly scaling back reliance on high-cost thermal generation using imported fuel. This stabilization in energy costs provides relief across industrial manufacturing, including key sectors like apparel & textiles, while supporting overall cost-of-living containment. • Current Status: The request has been fully withdrawn following yesterday's stakeholder consultations; final formal determination from PUCSL is pending.