Sri Lanka’s apparel sector is calling on authorities to expedite the legal framework that would allow businesses to purchase electricity directly from power generators through the national grid. The push centres on establishing a transparent, cost-based electricity wheeling tariff that supports both investment and the country’s export competitiveness.
The Joint Apparel Association Forum (JAAF), the principal body representing Sri Lanka’s apparel industry, stated that the proposed wheeling charge should cover network costs without acting as a deterrent to new investment. In addition to affordability, JAAF has called for industry consultation before any tariff is finalised, and for fair access to be extended to 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 an official statement.
What Triggered the Appeal
The call came in direct response to comments made by Public Utilities Commission of Sri Lanka (PUCSL) Director General and Chief Executive Officer Damitha Kumarasinghe at the Sri Lanka Economic and Investment Summit 2026. At the summit, Kumarasinghe expressed support for a simple and affordable electricity wheeling tariff, lending regulatory backing to a reform that manufacturers have long been seeking.
Wheeling, in electricity terms, refers to the process by which power generated by one party is transmitted through the national grid to another end customer, for a regulated charge. For manufacturers operating in Sri Lanka’s apparel industry and other export-oriented sectors, the arrangement would provide greater choice over electricity suppliers and enable them to negotiate supply terms directly with generators, rather than being exclusively dependent on the utility.
Regulator’s Position on Tariff Design
According to JAAF, Kumarasinghe stated that the electricity wheeling tariff should be designed in a manner that encourages investment while simultaneously allowing transmission and distribution companies to recover their operational costs and earn a reasonable return. This dual objective — protecting investor interest while ensuring infrastructure sustainability — is considered central to getting the framework right.
However, JAAF noted that discussions remain at an early stage and are contingent on the gazetting of the relevant legal provisions. The legal groundwork, therefore, is seen as the immediate priority before any tariff structure can be operationalised.
Kumarasinghe also raised an important sequencing concern: investors, he said, should be in a position to secure electricity supply commitments before they commit capital to projects, rather than having to wait for generation capacity to follow their investment decisions. This point directly addresses a longstanding barrier to industrial investment in Sri Lanka’s energy-intensive manufacturing sectors.
Market Mechanism and Storage Incentives
The PUCSL chief estimated that between 15 and 20 percent of total electricity could eventually be traded through a market mechanism. He stressed the importance of developing both wheeling infrastructure and market-based electricity trading in tandem.
JAAF extended this position further, noting that open-access and wheeling regulations, combined with stronger incentives for battery storage, could collectively provide manufacturers with more dependable and sustainable electricity options. The Sri Lanka apparel industry, which is both a significant employer and a major contributor to export earnings, has a direct stake in ensuring that energy supply is both reliable and competitively priced.
JAAF’s Commitment to Collaborative Reform
Expressing its willingness to work alongside regulators and the government, JAAF concluded its statement with a clear commitment to collaborative engagement. “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.
The electricity wheeling tariff reform, if fast-tracked through the required legislative process, could mark a meaningful step toward a more flexible and market-responsive electricity sector in Sri Lanka — one that gives export industries, including the country’s apparel sector, greater control over their energy costs and supply security.
