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Apparel exporters push for cost-based power wheeling tariff

Sri Lanka’s apparel industry has urged authorities to fast-track legal provisions allowing businesses to buy electricity directly from generators through the national grid, calling for a transparent, cost-based wheeling tariff to support investment and export competitiveness.

The Joint Apparel Association Forum (JAAF) said the proposed charge should cover network costs without discouraging investment. It also called for industry consultation before the tariff is finalised and fair access for businesses of all sizes, including small and medium manufacturers.

“JAAF encourages the prompt gazetting of the legal provisions needed to move the tariff forward, and a simple, transparent, cost-based tariff that does not discourage investment,” the industry body said in a statement.

The appeal follows comments by Public Utilities Commission of Sri Lanka (PUCSL) Director General and CEO Damitha Kumarasinghe at the Sri Lanka Economic and Investment Summit 2026 backing a simple and affordable tariff.

Wheeling allows electricity generated by one party to be delivered through the national grid to another customer for a regulated charge. For manufacturers, the arrangement could provide greater choice over electricity suppliers and allow them to negotiate supply terms directly with generators. According to JAAF, Kumarasinghe said the tariff should encourage investment while allowing transmission and distribution companies to recover their costs and earn a reasonable return.

However, discussions remain at an early stage and depend on the gazetting of the relevant legal provisions.

Kumarasinghe also said investors should be able to secure electricity supplies before committing capital, rather than wait for generation capacity to follow their investment decisions.

He estimated that 15 to 20 percent of electricity could eventually be traded through a market mechanism, stressing the need to develop both wheeling and market-based trading.

JAAF said open-access and wheeling regulations, alongside stronger incentives for battery storage, could give manufacturers more dependable and sustainable electricity options.

“JAAF looks forward to working with PUCSL, the Ministry and other stakeholders so that wheeling and electricity market reforms deliver certainty for investors and competitive energy for exporters,” it said.