Sri Lanka raises power tariff by 15% ahead of IMF official's visit

Colombo, Jun 11 (PTI) Sri Lankan authorities on Wednesday approved a 15 per cent increase in electricity tariffs, effective from Thursday, aiming to address the financial challenges faced by the state-run Ceylon Electricity Board (CEB).

The move came ahead of the upcoming visit of IMF's First Deputy Managing Director Gita Gopinath, scheduled for next week, to Sri Lanka.

The 15 per cent tariff hike approved by the Public Utilities Commission (PUCSL) is still short of the 18 per cent increase called for by the International Monetary Fund (IMF).

“We think it’s a fair increase. We had a public consultation, and got everyone’s views,” senior PUCSL official K P L Chandralal told reporters here.

He said the revised tariffs remain below the rates set in 2024.

The tariff adjustment comes in response to concerns raised by the IMF over the CEB's reported losses of LKR 18 billion in the first quarter of 2025, attributed to a tariff reduction implemented in January.

The cost-reflective electricity pricing was a key reform condition set by the global lender under its USD 2.9 billion, four-year Extended Fund Facility (EFF) agreement with Sri Lanka, initiated in 2023 during the country's economic crisis.

Gopinath will visit Sri Lanka from June 15 to 16. She is expected to hold bilateral discussions with the Sri Lankan authorities and several key stakeholders on the IMF’s engagement with the island nation. PTI CORR SCY SCY