IMF Links Substandard Coal and Procurement to Sri Lanka's Rising Power Costs

The International Monetary Fund (IMF) has identified issues with coal quality and procurement processes as a primary factor driving up electricity generation costs in Sri Lanka. Evan Papageorgiou, the IMF's Mission Chief for Sri Lanka, stated at a recent press briefing that the inability to generate power at maximum efficiency due to substandard coal directly contributes to higher expenses for the Ceylon Electricity Board (CEB). He highlighted that recent losses incurred during coal imports have significantly impacted the CEB's financial stability. Papageorgiou emphasized that revising electricity tariffs to cover these increased costs is crucial for the CEB's financial sustainability and to mitigate future losses.