The International Monetary Fund (IMF) has set new conditions for the disbursement of the fourth instalment of its financial support package to Sri Lanka, with a key focus on electricity tariff reforms.
It is reported that the IMF is insisting that the electricity bill must reflect the actual cost of electricity production.
This measure is aimed at improving the financial sustainability of the country’s power sector and reducing fiscal pressures on the government.
In addition to power sector reforms, the IMF has reiterated the importance of maintaining the balance of the primary account in line with the targets outlined in the original agreement.
This requirement is part of the broader fiscal consolidation measures agreed upon during the initial stages of the bailout program.
Once these conditions are met, the IMF is expected to present the proposal to its Executive Board for final approval, which would pave the way for the release of the next tranche of funding.
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