The government has taken steps to immediately reduce the electricity tariffs and prices of petrol, diesel and kerosene oil following commissioning of the third phase of the Norochcholai coal power plant which added another 900 megawatt of electricity to the national grid and also with an eye on attracting the voters at the upcoming Uva Provincial Council election and an impending Presidential election.

These price reductions were announced by President Mahinda Rajapaksa where electricity tariffs were reduced by 25 percent, prices of petrol reduced by Rs. 5.00 per litre, diesel by Rs. 3.00 per litre and kerosene oil by Rs. 20 per litre.

According to analysts, the Ceylon Electricity Board (CEB) is capable of reducing its diesel power generation due to the commissioning of the third phase of the Norochcholai coal power plant. Hence, the government has been able to reduce electricity tariffs since the generation costs of the CEB have been reduced.

The government added a fuel surcharge to the electricity bills in May 2013 and this was an unbearable burden on the consumer. The received strong criticism from the opposition and was a factor in the government losing its popularity.

Hence, by reducing the electricity tariffs by 25 percent the government expects to gain popularity at the upcoming Uva Provincial Council election and a Presidential election. Hence, the government gaining an opportunity of reducing the electricity tariffs with the conclusion of the Norochcholai coal power project is significant.

Current fuel prices are falling in the world market. The has been strong criticism that while Sri Lanka had not reduced fuel prices in the recent past it sells fuel at high prices while adding huge taxes.