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Sri Lanka to lower household power tariffs by 20%, regulator states

Sri Lanka will lower its home power tariffs by 20%, its power regulator said on Friday, in an effort to strengthen the country's healing from a. severe monetary crisis.

Under the current modification, markets would get a decrease. of 30% while organizations in the tourist sector, an essential foreign. exchange earner for the island nation, will see their power. prices dip by 31%.

The brand-new power costs will be executed from midnight on. Friday, the Public Utilities Commission of Sri Lanka (PUCSL),. said in a statement.

Sri Lanka's economy folded under a serious forex. crisis in 2022, however has actually rallied faster than expected after. protecting a $2.9 billion International Monetary Fund (IMF). program in March 2023.

When the crisis diminished its economy 7.8% in 2022, Sri Lanka. increased power rates by 75% that September, and by another 66%. the following February, to fulfill IMF conditions of removing. aids to the power sector.

But power tariffs were minimized by 22.5% last July helping. inflation, which peaked at 70% in September 2022, to decrease. steeply to minus 1.7% in December.

Making the most of lower inflation, the central bank set a. new single policy rate of 8% in November, alleviating financial. settings listed below previously utilized criteria and setting the phase. for stronger development.

Sri Lanka's real GDP development is approximated to have reached 5%. in 2024, the greatest in 7 years, according to central bank. information. The economy contracted by 2.3% in 2023.

(source: Reuters)