IMF commends Sri Lanka’s fuel pricing formula
May 18, 2018 11:45 am
The International Monetary Fund (IMF) has commended the Sri Lankan government decision to introduce a fuel pricing formula, which it says would benefit the country and the economy.
Sri Lanka hiked fuel prices last week after Cabinet approved a formula to adjust fuel prices based on the cost of production.
“We think that automatic fuel pricing mechanism marks a major step toward completing the energy pricing reforms that are underway in Sri Lanka, and minimizes the fiscal risks,” IMF spokesperson, Gerry Rice, told a press briefing on Thursday (17).
He stated that if implemented properly, the formula based pricing would eliminate fuel subsidies that benefit the rich rather than the poor. “So, we think it would benefit Sri Lanka and the economy.”
Mr Rice also said that the IMF Board is scheduled to discuss Sri Lanka’s completion of its fourth review on June 1.
