Sri Lanka should restore cost-covering electricity pricing as soon as possible to mitigate financial risks, says Evan Papageorgiou, the International Monetary Fund’s Sri Lanka Country Manager.
It has also been informed that it is essential to complete the fourth review of the IMF’s Extended Fund Facility (EFF) program.
The IMF’s earlier statement on the matter further states that the IMF Executive Board’s approval for the staff-level agreement will be subject to the following:
(i) Implementation of prior actions related to the restoration of cost-reflective power pricing and ensuring the proper functioning of the automatic power price adjustment mechanism.
(ii) Completion of the review of the financial assurances focusing on ensuring the committed financial contributions of multilateral partners and sufficient progress in debt restructuring.