ECONOMYNEXT – A visiting International Monetary Fund team has reviewed the pricing and balance sheets of state-run Ceylon Electricity Board and Ceylon Petroleum Corporation, Energy Minister Kanchana Wijesekera said.
The IMF team headed by Senior Mission Chief Peter Breuer had discussed a recent electricity tariff cut, and reviewed the progress on commitment on CEB and CPC, and their balance sheets, he said in an x.com post.
The current financial position of CEB, accounting principles and standards adopted, automation of bulk supply tariff filing, conducting a dispatch audit, outstanding payments and forecasts for 2024, were discussed, Minister Wijesekera said.
Sri Lanka cut electricity prices 21 percent, with steeper 33 percent cut for smaller users in what is to be an election year.
The Ceylon Petroleum Corporation pricing formula and its operations were also discussed, he said.
Sri Lanka has taken billions of dollars of debt accumulated during monetary instability triggered by so-called ‘flexible’ central bank policy, as forex shortages emerged from rate cuts enforced with printed money.
Energy utilities among the worst hit by dual anchor conflicts in monetary regimes in unstable countries which eventually end up in default.
A recent electricity tariff cut was made possible by currency appreciation, Minister Wijeskera said. (Colombo/Mar13/2024)