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Pricing formula for fuel by March next year

The government is committed to introduce a cost-reflective pricing formula for fuel and electricity by next year, Central Bank Governor Dr. Indrajit Coomaraswamy said.

“The government is now committed under the structural benchmarks of the IMF to introduce a pricing formula for fuel in March and a pricing formula for energy probably by September, next year,” Coomaraswamy told a forum in Colombo, this week.

State-run Ceylon Electricity Board (CEB) has a near total monopoly in electricity generation and a total monopoly in transmission and distribution in Sri Lanka, while Ceylon Petroleum Corporation (CPC) has only one private sector competitor—Lanka Indian Oil Company PLC.

Both the CEB and CPC have been selling their products and services at subsidized prices and as a result, have accumulated losses running into billions of rupees, becoming two of the largest loss-making state-owned enterprises (SOEs).

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