The International Monetary Fund (IMF) has confirmed that there will be no immediate changes to the electricity pricing objectives under Sri Lanka’s IMF-supported program. This reaffirmation underscores the critical importance of maintaining cost recovery within the utility sector.
During a press briefing held yesterday, Julie Kozack, Director of the IMF Communications Department, addressed inquiries concerning the program. She highlighted that a firm commitment to ensuring cost recovery in electricity tariffs is a key component of the program. Kozack emphasized the significance of this commitment for Sri Lanka’s fiscal sustainability, as it assists in preventing financial losses for state-owned utility companies.
She also mentioned that any future adjustments necessary to support Sri Lanka would be discussed between the IMF staff and Sri Lankan authorities through ongoing fact-finding engagements. These discussions will consider the country’s current economic conditions and recovery needs.
“Our goal is to help Sri Lanka as it recovers from the catastrophic hurricane and to provide our support in whatever way, in line with our own mandate around helping Sri Lanka maintain macroeconomic stability,” Kozack stated.
In related news, IMF Mission Chief for Sri Lanka, Evan Papageorgiou, announced that an IMF staff team will visit Sri Lanka from January 22 to January 28, 2026. The purpose of the visit is to assess the extent of the damage caused by Cyclone Ditwah. Papageorgiou noted that the mission’s findings will inform subsequent discussions on the IMF-supported program.
He further explained that the visit exemplifies the IMF’s dedication to assisting Sri Lanka as it faces the economic and humanitarian challenges resulting from the cyclone. During the mission, IMF staff will collaborate with government officials and other stakeholders to evaluate the impact on infrastructure, livelihoods, and overall economic stability.
“The IMF team will explore how it can best assist Sri Lanka in its recovery efforts, including by resuming the Extended Fund Facility-supported program and offering policy advice and technical assistance to promote resilience and sustainable growth. Further communication will be provided at the end of the mission,” Papageorgiou added.
Leave a Reply
You must be logged in to post a comment.