ELECTRICITY PRICES SLATED TO RISE AS GOVT.UNDER DURESS FROM IMF

The government is under compulsion to increase electricity prices since the International Monetary Fund (IMF) will unlock the next tranche of US$ $ 344 million, contingent on the restoration of cost recovery pricing, Daily Mirror learns.

- By KELUM BANDARA

In the fulfilment of an election promise, the current government reduced electricity tariffs by 20 per cent in January this year. However, the IMF conveyed its displeasure over this move since it is not cost-recovery pricing.

The IMF and the Sri Lankan authorities reached a staff-level agreement recently on economic policies to conclude the Fourth Review of Sri Lanka's reform programme supported by the IMF's Extended Fund Facility.

Once the review is approved by the IMF Executive Board, Sri Lanka will have access to about US$344 million in financing, bringing the total IMF financial support disbursed under the arrangement to about US$1.7 billion.