Sri Lanka, Oct. 10 -- The International Monetary Fund (IMF) has urged Sri Lanka to uphold its cost-recovery electricity pricing mechanism, warning that failure to implement crucial energy sector reforms could lead to serious fiscal risks and threaten the nation's long-term economic stability.

Speaking at a media briefing yesterday, IMF Mission Chief for Sri Lanka, Evan Papageorgiou, stressed that reforms in the electricity sector are a core structural benchmark under the IMF's Extended Fund Facility (EFF) programme. He emphasized that maintaining cost-recovery pricing is vital to ensure the Ceylon Electricity Board (CEB) and its future entities operate on sustainable, commercial principles without burdening taxpayers.

"This is one of th...