No Cheaper Power Without Efficiency: CBSL Chief

COLOMBO (News 1st); Sri Lanka's Central Bank Governor Dr. Nandalal Weerasinghe emphasized that reducing electricity tariffs in Sri Lanka is possible, but only if the Ceylon Electricity Board (CEB) significantly cuts its operational costs. 

He made these remarks during a media briefing held yesterday, responding to questions about the country’s economic outlook and energy pricing.

Dr. Weerasinghe outlined two key strategies for achieving lower electricity prices.

He stressed that enhancing the efficiency of the CEB could lead to substantial cost reductions.

“If inefficiencies are addressed, and productivity is improved, the overall cost of electricity generation and distribution can be lowered,” he said.

The Governor also highlighted the importance of transitioning to more cost-effective energy sources. “While this cannot be done overnight, long-term investments in low-cost power generation will help reduce electricity costs sustainably,” he added.

Responding to a question about the International Monetary Fund’s (IMF) stance on energy pricing, Dr. Weerasinghe confirmed that the government had already agreed to adopt a cost-recovery pricing model as part of its economic reform commitments.

He noted that although the CEB has not yet fully recovered its costs through current tariffs, adjustments are expected to ensure financial sustainability.

“The IMF is not delaying the next tranche of funding due to this issue alone,” he clarified. “However, they are closely monitoring whether the country is moving toward a pricing structure that reflects actual costs.”