President Anura Kumara Dissanayake informed the International Monetary Fund (IMF) that the government has taken steps to restore a cost-reflective pricing mechanism for electricity and fuel in Sri Lanka.The President sent an official letter to the IMF regarding the matter.
Earlier this week, the IMF Executive Board completed the fifth and sixth reviews under Sri Lanka’s Extended Fund Facility programme and approved the release of 695 million US dollars to support the country’s economic reforms and policy agenda.
The letter carried his capacity as Minister of Finance, Planning and Economic Development, and Central Bank Governor Dr. Nandalal Weerasinghe. They sent the communication to IMF Managing Director Kristalina Georgieva on May 13.
Government Focuses on Energy Pricing Reforms.
The government confirmed its commitment to reintroduce a pricing formula that covers the actual cost of electricity and fuel. Authorities also stated that fuel subsidies and other relief measures would remain within a limit of 100 billion rupees. The government expects to complete these payments before the end of September.
The administration stressed that it would continue implementing economic reforms under the IMF programme without interruption.
IMF Programme Supports Economic Stability.
The government highlighted several key priorities in the reform process. These include maintaining fiscal stability through revenue-based policies, strengthening the social protection system, reforming the financial sector, and ensuring sustainable public debt management.
The administration also plans to maintain price stability, improve foreign exchange reserves with greater exchange rate flexibility, strengthen financial sector stability, and introduce high-level anti-corruption reforms.
