The International Monetary Fund supports Sri Lanka’s new automatic fuel pricing formula, IMF Spokesperson Gerry Rice said in Washington, D.C. on Thursday.
“We think the automatic fuel pricing mechanism marks a major step toward completing the energy pricing reforms that are underway in Sri Lanka, while minimising the fiscal risks,” the IMF Spokesperson said.
“If implemented properly, the formula-based pricing would eliminate fuel subsidies that benefit the rich rather than the poor,” he added.
Sri Lanka increased the prices of petrol, diesel, and kerosene this month following a Cabinet decision. Finance Minister Mangala Samaraweera said the price would be adjusted every two months, based on Platts Singapore benchmark prices.
On Thursday, Rice confirmed that the IMF board would discuss Sri Lanka’s fourth review of the fourth review of their US$ 1.5 billion stabilisation programme on June 1.
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