Colombo, Sri Lanka – The International Monetary Fund (IMF) has advised the government to increase electricity tariffs, warning that the current revised tariff structure is insufficient to cover the cost of power generation.
Speaking at a media briefing, Peter Brewer, Senior Head of Mission of the IMF in Sri Lanka, stated that despite the electricity tariff revision in January, the Ceylon Electricity Board (CEB) remains at risk of incurring further losses.
Brewer cautioned that under the new tariff system, the CEB’s debt burden could increase again, making it a financial liability for the government.
“We have all seen how much of a burden the CEB can be on the government. It is crucial to re-establish a cost-covering electricity pricing structure in the upcoming tariff revision,” Brewer emphasized.
He further highlighted that automated pricing mechanisms are already in place to adjust tariffs based on costs, and stressed the importance of allowing these systems to function effectively to prevent further financial strain.
