Former Public Utilities Commission of Sri Lanka (PUCSL) Chairperson Janaka Ratnayake yesterday (5) expressed disapproval of the International Monetary Fund’s (IMF) recommendations and requirements pertaining to revising utility costs such as electricity. He noted that while some of the actions recommended by the IMF are disadvantageous to the public, some do not resonate with Sri Lanka’s laws and policies.

“Neither the IMF, the President nor the Cabinet of Ministers is in a position to issue instructions to increase electricity fares because the relevant process has already been stipulated in the PUCSL Act and the Electricity Act. Revising electricity fares takes place in accordance with a cost-reflective mechanism,” he said, opining that there is no mechanism to revise electricity fares based on instructions from either the IMF or the Government. The IMF must respect Sri Lanka’s law, he said, adding that the IMF is not in a position to issue recommendations regarding electricity fare revisions outside the country’s law.

Ratnayake pointed out that the Ceylon Electricity Board has profited over Rs. 300 billion following IMF-directed electricity fare revisions, and that in such a context, the latest recommendations from the IMF to increase electricity fares again are therefore unacceptable. He opined that the IMF, as an entity that has recognised that over 50% of Sri Lankans are suffering from poverty, should not instruct the country to increase utility costs and instead provide the relevant advice to reduce the cost of essentials such as food.

This week, the IMF has raised concerns about the reduction of electricity fares, adding that electricity fares should reflect the true cost of generating and distributing electricity.