IMF welcomes fuel pricing mechanism

Washington, DC: The International Monetary Fund (IMF) says Sri Lanka’s automatic fuel pricing mechanism marks a major step toward completing the energy pricing reforms and would benefit the country and the economy.

Responding to a question at the regular press briefing of IMF on Thursday (17 May), Communications Department Director Gerry Rice said IMF thinks that the “automatic fuel pricing mechanism marks a major step towards completing the energy pricing reforms that are underway in Sri Lanka, and minimises the fiscal risks”.

He said 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.”

Rice added that the IMF board is scheduled to discuss Sri Lanka’s completion of its fourth review on 1 June.