Sri Lanka Greenlights Electricity Tariff Hike to Tackle Financial Strain
Sri Lanka's authorities have approved a 15% hike in electricity tariffs to address financial issues within the Ceylon Electricity Board. The decision, ratified before IMF's Gita Gopinath's visit, falls short of the IMF's suggested 18% increase yet aims to meet reform conditions under the Extended Fund Facility.
- Country:
- Sri Lanka
Sri Lankan authorities have sanctioned a 15% increase in electricity tariffs starting Thursday to combat financial challenges at the Ceylon Electricity Board (CEB). This decision precedes the upcoming visit of the IMF's First Deputy Managing Director, Gita Gopinath, scheduled for next week.
The Public Utilities Commission (PUCSL) greenlit the tariff adjustment, a move that falls short of the 18% hike proposed by the International Monetary Fund (IMF), according to senior PUCSL official K P L Chandralal.
The tariff revision is a response to the IMF's concern over CEB losses amounting to LKR 18 billion in early 2025, linked to a previous tariff reduction. The cost-reflective pricing is part of reform conditions under the IMF's $2.9 billion, four-year extended fund program with Sri Lanka, launched amid the country's economic crisis.
(With inputs from agencies.)
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