COLOMBO: Cash-strapped Sri Lanka on Wednesday announced a 15 percent increase in the electricity price to shore up revenues for the state-run utility, in line with conditions imposed by an IMF bailout.
The Public Utilities Commission said it allowed the Ceylon Electricity Board (CEB) to charge the higher rates from Thursday, six months after a controversial reduction that pushed the utility into the red.
The government had forced a 20 percent price cut on the CEB in January, despite fears that it would cause the government-owned company to lose money and undermine the national budget.
Ensuring cost-recovery and doing away with subsidies is in line with the conditions set by the International Monetary Fund, which granted a four-year, $2.9 billion loan to help salvage Sri Lanka’s economy.
The country had declared bankruptcy after defaulting on its $46 billion foreign debt in April 2022, having run out of foreign exchange to finance even the most essential imports, such as food, fuel and medicines.