Prices of goods, services can be reduced by 20%: Kanchana

Colombo, July 16 (Daily Mirror)- The prices of goods and services in the market can be reduced by approximately 20% following the revision of the electricity tariff, Power and Energy Minister Kanchana Wijesekera said today.

The Minister urged the business community to alleviate the burden on the public by lowering prices, starting from midnight on the day of the electricity tariff adjustment, coinciding with the reduction in electricity bills.

Addressing the media briefing under the theme “Collective Path to a Stable Country” held at the President’s Media Centre (PMC) today, the Minister said that those consuming less than 90 units have benefited the most from the recent electricity amendment, receiving significant relief.

There has been a significant 20% price reduction for factories and small businesses in this electricity tariff revision. Despite this reduction, it appears unlikely that the prices of goods and services, which typically rise on the same night as electricity tariff hikes, will decrease accordingly. Recently, fuel and kerosene prices have also dropped without leading to lower consumer prices. Therefore, with the substantial decrease in electricity costs this year, we urge the public to take advantage of these savings, with potential for at least a 20% reduction in overall expenses,” he said.

“During previous electricity tariff increases, media reports often compared our tariffs with those of neighbouring countries in the region. I encourage the media to now initiate discussions on how this reduction compares with regional electricity tariffs and emphasise the continuity of electricity supply. Some media and journalists have speculated that this tariff revision was timed due to upcoming elections. However, these policies were formulated back in 2022 through a formal process, resulting from sound policy decisions rather than populist measures. Therefore, I kindly request equal recognition and acknowledgment for the President and the government when electricity tariffs are reduced,” the Minister added.