To avoid burdening consumers, the Sri Lankan government has turned down a request by the International Monetary Fund (IMF) urging the government to suspend its fuel subsidy. IMF suggested that the government raise fuel prices to avoid a backlash on the economy. Sri Lanka's government-owned Ceylon Petroleum Corporation currently incurs losses to the tune of Rs (Lankan) 2 billion (US $18 million) a year. The minister of petroleum, A H M Fowzie, said that the government has signed an agreement with the Iranian government to double the capacity of its Sapugaskanda refinery to 100,000 barrels per day. IMF also said that the Ceylon Electricity Board is likely to incur huge losses due to the lack of adjustment in electricity tariffs that have fallen below cost recovery levels.
We are a voice to you; you have been a support to us. Together we build journalism that is independent, credible and fearless. You can further help us by making a donation. This will mean a lot for our ability to bring you news, perspectives and analysis from the ground so that we can make change together.
Comments are moderated and will be published only after the site moderator’s approval. Please use a genuine email ID and provide your name. Selected comments may also be used in the ‘Letters’ section of the Down To Earth print edition.