The Public Utilities Commission of Sri Lanka (PUCSL) was established by the Act No 35 of 2002 as a multi-sector regulator to regulate certain physical infrastructure industries in the country. It came into operation in mid 2003 with the appointment of the first group of Commissioners and its Director General. Initially the PUCSL Act provided for regulation of the Electricity and Water Service industries. Later in March 2006 Petroleum industry was also added to the list of industries to be regulated by the PUCSL.

With the enactment of Sri Lanka Electricity Act No. 20 of 2009, PUCSL became as the economic, safety and technical regulator of the Electricity industry.  With a view of ensuring adequate investment, greater availability, efficient supply, and improved quality of services in the electricity industry, PUCSL regulates generation, transmission, distribution, supply and use of Electricity in Sri Lanka. Currently proposed legislations in Water Services and Petroleum Industries are being drafted to empower PUCSL as the regulator of those industries.