Sri Lanka to Revamp Fuel and Electricity Pricing

COLOMBO (News 1st): Sri Lanka has decided to introduce a new mechanism to adjust domestic fuel and electricity prices in response to rising fuel costs in the global market, according to Deputy Minister of Finance Dr. Anil Jayantha Fernando.

The Deputy Minister said that the current situation in the Middle East, marked by ongoing conflict, has led to a significant increase in global fuel prices, which have risen by between 20% and 35% in the world market.

He noted that such sharp and unrestricted price increases make it impractical to continue adjusting local fuel and electricity prices under the previously used system.

In light of these developments, the government has decided to formulate a new pricing mechanism to align fuel and electricity tariffs with global market realities while considering domestic economic conditions.

Dr. Fernando emphasised that the new system will be designed to ensure that low-income earners are affected as minimally as possible.

He also stated that representatives of the International Monetary Fund (IMF) will be informed about the proposed new pricing mechanism as part of ongoing coordination and discussions related to economic management.