Planters call for ‘fair' electricity tariffs to sustain industry

THE Planters' Association of Ceylon (PA) has called for the implementation of a more sustainable electricity tariff framework and energy generation policy, citing the severe economic strain faced by the plantation sector and other export-oriented industries due to prohibitively high electricity tariffs.

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The PA's appeal comes at a critical juncture, with public consultations on the Ceylon Electricity Board's (CEB) most recent proposal to the Public Utilities Commission of Sri Lanka (PUCSL) for a 13.6% hike in tariffs by the second quarter of 2026 scheduled over the coming month.

Following the regulator's rejection of the previously proposed 1Q hike, the industry now faces the risk of a 'price cliff' in April, as the utility seeks to recover infrastructure losses and operational deficits, the Association said in a statement.

While agri-businesses require minimal energy inputs during cultivation, plantation operations become highly energy-intensive once crops reach the factory stage, where continuous processing is essential for operational continuity.

The PA noted that, unlike several other key exportearning sectors, Regional Plantation Companies (RPCs) are excluded from any form of concessionary or differential tariff structures. While other export industries often benefit from subsidised infrastructure within dedicated Export Processing Zones or negotiated sector-specific relief, RPCs are billed under standard Industrial (1-2/1-3) General rates.

Consequently, due to the 24-hour nature of tea and rubber processing, RPCs are disproportionately impacted by Time of Use (TOU) peak-hour surcharges. This lack of a dedicated'Agricultural Export'tier means the plantation sector bears some of the highest effective unit costs within the non-domestic category, directly undermining the global price competitiveness of Sri Lankan exports.