• Ar
  • Es
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Feature
  • Videos
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Feature
Videos
Infographs
In Pictures
  1. Home
  2. News
  3. Asia
  4. Sri Lanka under IMF grip, raises power prices again
Asia

Sri Lanka under IMF grip, raises power prices again

  • By Al Mayadeen English
  • Source: Agencies
  • 16 Feb 16:09
  • 1 Shares

The debt-ridden country, which is on the verge of economic collapse, has been facing a political crisis and is struggling with deteriorating social issues and security.

  • Demonstrators protest inside the Presidential Secretariat premises, in Colombo, Sri Lanka, July 9, 2022. (Reuters)
    Demonstrators protest inside the Presidential Secretariat premises, in Colombo, Sri Lanka, July 9, 2022. (Reuters)

Officials reported Thursday that Sri Lanka's energy board raised customer prices by up to 275%, the second high increase in months as the insolvent island nation seeks an IMF deal.

Sri Lanka suffered from an unprecedented financial crisis last year as 22 million people endured months of food and fuel shortages, along with lengthy power cuts.

The people of #SriLanka are suffering amid a crippling economic crisis that has been accumulating for more than a decade.#srilankacrisis pic.twitter.com/oqsMLAm1pZ

— Al Mayadeen English (@MayadeenEnglish) March 16, 2022

The government has defaulted on its $46 billion foreign debt and is negotiating a bailout deal with the International Monetary Fund to allegedly repair its shattered finances.

"We had to raise electricity charges to be in line with IMF conditions that we cannot get handouts from the treasury," Energy Minister Kanchana Wijesekera told reporters. 

"We need to generate revenues to cover our costs," he added.

Electricity will now cost at least 30 rupees (eight cents) per kilowatt-hour. Meanwhile, the 275% increase in the lowest rate comes six months after a 264% increase.

Larger users' prices have been raised by 60%, following an increase of 80% in August.

Wijesekera claimed that the tariff hikes would allow Sri Lanka's state electricity monopoly to halt the 140-minute daily blackouts now in force over the island.

"With increased revenue, we will be able to buy the fuel necessary to ensure uninterrupted power from today," he said.

It is worth noting that Sri Lanka suffered from daily blackouts of up to 13 hours last year as utilities ran out of money to buy imported fuel for generators. 

Months of protests during the height of the crisis pushed then-President Gotabaya Rajapaksa to depart the country and resign in July following allegations of economic mismanagement and corruption.

His successor, Ranil Wickremesinghe, has negotiated with international creditors and imposed tax hikes "to smooth passage of the IMF bailout."

Wickremesinghe predicted that Sri Lanka's economy will collapse by up to 11% last year and that the country would likely stay insolvent until at least 2026.

According to the UN Children's Agency, approximately one-third of Sri Lankans require humanitarian assistance as a result of the crisis.

  • economic crisis
  • IMF
  • Sri Lanka
  • high power prices

Trending Now

All
Ranil Wickremesinghe during an interview with the Associated Press in Colombo, Sri Lanka, Saturday, June 11, 2022 (AP)

Three more years of Sri Lankan bankruptcy: President

Most Read

Indonesian president Joko Widodo during an interview in Jakarta in 2016 (Reuters)

Widodo urges Indonesia to abandon Visa, MasterCard to be 'independent'

  • Asia
  • 16 Mar
Treasury Secretary Janet Yellen listens to opening remarks before testifying before the Senate Finance Committee about the President's proposed budget request for the fiscal year 2024, Thursday, March 16, 2023, on Capitol Hill in Washington. (AP)

US Debt ceiling ‘must be raised’ ahead of default: Treasury Secretary

  • US & Canada
  • 16 Mar
The Desert of the Real; Russia's SMO a year later

The Desert of the Real; Russia's SMO a year later

  • Europe
  • 14 Mar
Rallies held in Washington DC to protest US militarism

Peace rallies held in Washington DC to protest US militarism

  • US & Canada
  • 18 Mar

Read this

All
Estonian troops parade in Narva, Estonia (AP)
Europe

NATO weighs deploying 300,000 troops on Russia's borders

  • 19 Mar
UK Home Secretary visits Rwanda to push for migrant deportation plan
Africa

UK expands criticized migrant deportation deal with Rwanda

  • 19 Mar
Trucks carrying humanitarian aid are seen at the Bab al Hawa border crossing with Syria on  February 9, 2023. (Reuters)
MENA

Syrian Red Crescent: Militants prevent aid convoys from entering Idlib

  • 19 Mar
Iran's Foreign Ministry spokesman Nasser Kanani holds a press conference in Tehran on July 13, 2022. (AFP)
Europe

Iran lambasts French police over excessive violence against protesters

  • 19 Mar
Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS