The International Monetary Fund (IMF) has said there will be no immediate changes to electricity pricing objectives under Sri Lanka’s IMF-supported programme, reaffirming the importance of maintaining cost recovery in the power sector.
Responding to a question at a press briefing on January 15, IMF Communications Department Director Julie Kozack said the programme includes a firm commitment to cost-reflective electricity tariffs. She stressed that this is essential for Sri Lanka’s fiscal sustainability, as it prevents state-owned utility companies from accumulating losses.
Kozack noted that any future adjustments to support Sri Lanka would be discussed between IMF staff and the Sri Lankan authorities during ongoing engagements. She said such discussions would take into account prevailing economic conditions and the country’s recovery needs.
“Our goal is to help Sri Lanka as it recovers from the catastrophic hurricane and to provide our support in whatever way, in line with our mandate to help Sri Lanka maintain macroeconomic stability,” she said.
Meanwhile, IMF Mission Chief for Sri Lanka Evan Papageorgiou announced that an IMF staff team will visit Sri Lanka from January 22 to January 28, 2026, to assess the scale and impact of the damage caused by Cyclone Ditwah.
He said the findings of the mission will inform future discussions on the IMF-supported programme and reflect the Fund’s commitment to supporting Sri Lanka as it addresses the economic and humanitarian challenges resulting from the cyclone.
During the visit, IMF officials will meet with government representatives and other stakeholders to evaluate the impact on infrastructure, livelihoods, and overall economic stability.
“The IMF team will explore how it can best assist Sri Lanka in its recovery efforts, including through the resumption of the Extended Fund Facility-supported programme, as well as by providing policy advice and technical assistance to support resilience and sustainable growth. Further details will be shared at the conclusion of the mission,” Papageorgiou said.
