The Public Utilities Commission has made an official recommendation to reduce electricity tariffs by an average of 20%. This proposal, however, requires approval from the Ministry of Finance before it can be implemented. As the Minister of Finance, the President has been given the ultimate authority to make the final decision on this matter.
If the proposed reduction in tariffs goes into effect, the Ceylon Electricity Board (CEB) is expected to face a significant financial loss, estimated at nearly Rs 45 billion over the next six months. This potential loss has raised concerns about its alignment with the terms and conditions agreed upon with the International Monetary Fund (IMF), as these agreements often include fiscal targets and financial stability requirements.
Sources within the CEB indicate that careful consideration will be given to all relevant factors, including the potential impact on its financial health and compliance with IMF commitments. A formal announcement from the CEB regarding its decision is anticipated in the near future.
