Sri Lanka President Anura Kumara Dissanayake has revealed that a June electricity tariff revision will see a hike.
Speaking during the ‘SATANA’ televised political discussion last night (May 02), President Dissanayake had emphasised the need for cost-reflective electricity pricing, aligning with recommendations from the International Monetary Fund (IMF).
Addressing speculations on the upcoming electricity tariff changes, the President confirmed that the next revision will take place on June 01st.
“The Treasury cannot continue to subsidize the CEB indefinitely. Electricity must be priced based on actual production costs,” he pointed out.
He also revealed that the CEB is burdened with Rs. 220 billion in legacy debt, which has now been restructured. “A portion of this debt will be factored into the tariff. While there may be a slight increase, it will still be lower than the rates in December 2024,” he assured.
Delay in 5th IMF tranche if not tariff increase”
Meanwhile, speaking at a media briefing yesterday, United National Party (UNP) National Organiser Sagala Ratnayake has said that the government is facing a dilemma as it must either increase the power tariff or face a delay in receiving the fifth tranche under the Extended Fund Facility (EFF) agreement signed with the IMF.
He pointed out that although Sri Lanka reached a staff-level agreement on the fourth review under the EFF agreement, approval from the IMF’s Executive Board is still pending.
“The staff-level agreement is subject to IMF Executive Board approval, contingent on (i) the implementation of prior actions relating to restoring electricity cost-recovery pricing and ensuring the proper function of the automatic electricity price adjustment mechanism, and (ii) the completion of the financing assurances review,” Mr. Ratnayake said, quoting the release issued by the IMF.
“The government will have to increase the power tariff to obtain the fifth tranche under the EFF agreement, as per the IMF release. Industries will be affected if the government increases power tariffs to recover costs,” he said, adding that the Sri Lankan government should issue a clear statement on this situation.
