IMF calls on Sri Lanka to implement pricing formula for electricity

COLOMBO (News 1^st) - Nearly a month after Sri Lanka approved an automatic pricing formula for fuel, the International Monetary Fund is now calling on the Government to implement a similar pricing formula for electricity and for a restructuring plan for debt-ridden SriLankan Airlines. The International Monetary Fund, with whom Sri Lanka has an ongoing Extended Fund Facility arrangement, called the recent approval of an automatic fuel pricing formula 'a major achievement towards reducing fiscal risks from state-owned enterprises'. The IMF says implementing an automatic pricing formula for electricity and a restructuring plan for SriLankan Airlines, as well as further strengthening SOE governance and transparency is 'essential', adding, the impact of the reforms on the vulnerable can be mitigated by ongoing efforts to strengthen social safety nets.