Sri Lanka cabinet approves new electricity tariff without saying what it is
Sri Lanka’s cabinet on Monday approved new electricity tariffs to reflect the cost of coal and power generation to take effect this month, Power Minister Kanchana Wijesekera said, without saying how much higher they would be.
Sri Lanka raised electricity tariffs by 75% last August and a cabinet proposal to raise them by a further 25% had been under consideration on Monday.
Sri Lanka is struggling under its worst financial crisis in seven decades and has to put its massively indebted public finances in order to unlock a $2.9 billion IMF loan that was agreed in September.
“Cabinet approval granted to amend the general policy guidelines for the electricity industry and to implement a cost reflective electricity tariff to be implemented from Jan 2023,” Wijesekera wrote on Twitter.
The 25% proposal had sparked widespread criticism from opposition political parties, unions and Sri Lanka’s power regulator.
“The concern with the proposed tariffs was that they would impact the poor too much,” Janaka Ratnayake, chairman of power regulator Public Utilities Commission of Sri Lanka (PUCSL), told Reuters.
He added, however, that the PUCSL accepted the Cabinet’s decision, taking into consideration coal costs and expenses to operate hydropower plants. He also did not say how much higher they would be.
Sri Lanka has a state-run power monopoly, the Ceylon Electricity Board, which has incurred massive losses. The government has committed to increasing power prices to reduce losses and put public finances on a sounder footing.
- Sri Lanka to initiate new online passport application system May 30, 2023
- India extends USD 1 Billion Credit Line for Sri Lanka until March 2024 May 30, 2023
- Cabinet approves resume of the Colombo Light Rail Transit project May 30, 2023
- Sri Lanka Government to implement strict law enforcement against religious disharmony May 30, 2023
- Food insecurity improved in Sri Lanka but prevails within specific regions – FAO and WFP May 29, 2023
- ADB approves $350 Million for Sri Lanka economic stabilization programme May 29, 2023
- Ven. Rajangane Saddharathana Thera arrested May 29, 2023