Home Sri Lanka IMF ties fourth loan instalment to cost-reflective electricity pricing
Sri Lanka

IMF ties fourth loan instalment to cost-reflective electricity pricing

Share
Share

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.

Share

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Articles
Sri Lanka

Rs. 384 million youth summit exposes cracks in JVP’s ‘non-elitist’ image

Former Provincial Councillor Waruna Rajapaksa has levelled serious allegations of financial irregularities...

Sri Lanka

Weligama PS chairman ‘Midigama Lasa’ shot dead in his office

Weligama Pradeshiya Sabha chairman Lasantha Wickramasekara, widely known as ‘Midigama Lasa’, has...

Sri Lanka

Cucumber farmers struggle with rapidly spreading crop disease

Cucumber farmers in Wan-ela village, located in the agricultural heartland of Kantale,...

Sri Lanka

HRCSL probes detention of Tamil Holy Quran consignment by Customs

The Human Rights Commission of Sri Lanka (HRCSL) has requested a report...