Cost recovery in electricity pricing is crucial to eliminating losses - IMF

by Zulfick Farzan 20-10-2023 | 9:16 AM

Colombo (News 1st); In order to eliminate the financial losses in the electricity sector, it is crucial to maintain cost recovery in electricity pricing, said IMF Deputy Mission Chief for Sri Lanka, Ms. Katsiaryna Svirydzenka.

Speaking to reporters on Friday (20), she said the financial losses in the electricity sector eventually become a burden on the taxpayers, especially on the poor and vulnerable.

"It is one of the key elements in the fund-supported program in Sri Lanka," she said while adding that the impact of the electricity tariff hike on the poor should be mitigated via a strong social safety net.

She also noted that Sri Lanka must make structural reforms to make the electricity sector more efficient, and improve the governance of state-owned enterprises, and that should lower the cost of electricity in the medium and long term.

These comments came several hours after the Public Utilities Commission of Sri Lanka granted permission to revise the electricity tariffs with effect from Friday (20).