Government is likely to introduce an automatic pricing formula for electricity in near future. This will be in line with a proposal put forward by the International Monetary Fund (IMF). The Government had earlier implemented a fuel pricing formula following a proposal put forward by the IMF.
Now the IMF has proposed an automatic pricing formula for electricity and other steps to strengthen social safety nets.
“The recent approval of an automatic fuel pricing formula is a major achievement towards reducing fiscal risks from state-owned enterprises (SOEs). In this regard, it is essential for the authorities to implement an automatic pricing formula for electricity and a restructuring plan for Sri Lankan Airlines, as well as further strengthening SOE governance and transparency. The impact of the reforms on the vulnerable can be mitigated by ongoing efforts to strengthen social safety nets,” Mitsuhiro Furusawa, Acting Chair and Deputy Managing Director, had said after the IMF had completed the fourth review of Sri Lanka’s economic performance under the program supported by a three-year Extended Arrangement under the Extended Fund Facility (EFF) arrangement