PUCSL and Treasury under IMF spotlight as CEB seeks 11.5% power tariff hike

The Public Utilities Commission of Sri Lanka (PUCSL) and the Treasury are facing heightened scrutiny as the Ceylon Electricity Board (CEB) presses for an 11.5 percent electricity tariff increase, a move closely tied to IMF-driven state-owned enterprise (SOE) reforms aimed at curbing losses and easing fiscal pressure on the State.

- BY IFHAM NIZAM

The proposed hike comes as the Treasury intensifies efforts to reduce the budgetary burden of loss-making SOEs under Sri Lanka's IMF programme, which places strong emphasis on cost-reflective pricing, improved governance and the elimination of quasi-fiscal deficits.

Power sector sources said the PUCSL has completed its technical evaluation of the CEB proposal and is expected to announce its determination shortly.

The decision is being closely watched not only as a test of regulatory independence, but also as an indicator of how Treasury-backed fiscal discipline is being enforced through independent regulators.

Under the IMF agreement, Sri Lanka has committed to restructuring key SOES, such as, the CEB to prevent recurring losses from spilling over into public finances.