As per the announcement made on Tuesday, Sri Lanka's state-run electricity monopoly will raise tariffs by 264 percent for people consuming the least, while higher users will face a smaller increase.
According to the Ceylon Electricity Board (CEB), the regulator had allowed it to carry out the sharp increases, the first in nine years, from Wednesday to recoup part of its accumulated losses of $616 million.
The CEB had asked for a bigger tariff increase of over 800 percent, but the regulator capped it at a maximum of 264 percent, officials said.
Two-thirds of the 7.8 million households using less than 90 kilowatts a month will be affected by the highest increases, while more significant consumers will pay about 80 percent more, according to official records.
The smallest consumers, currently charged 2.50 rupees a unit, will be charged 8.0 rupees. Bigger consumers will have to pay 75 rupees ($0.20) as they are being charged 45 rupees a unit.
After running out of foreign exchange reserves to finance even its most essential imports such as food, fuel, and medicine, Sri Lanka is facing its worst economic crisis.
The country is also facing hyperinflation and lengthy electricity blackouts after the CEB could not buy oil for its thermal generators.
The government declared it was defaulting in April and is negotiating with the International Monetary Fund for a possible bailout as it was unable to repay its $51 billion foreign debt.
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