Sri Lanka's NPP Government Reverses Key IMF Bailout Policy

The new NPP government in Sri Lanka has reversed a major policy regarding the privatisation of state-owned enterprises, specifically affecting the Ceylon Electricity Board. This move rejects the previously approved Electricity Act and its reforms, putting the ongoing IMF bailout programme in question.

The newly formed National People's Power (NPP) government in Sri Lanka has officially announced a key policy reversal, impacting the ongoing International Monetary Fund (IMF) bailout programme. The government has reversed the Electricity Act, a significant reform introduced under the previous administration led by then-President Ranil Wickremesinghe.

This decision affects the state power entity, Ceylon Electricity Board (CEB), a focal point of the reforms. A CEB trade union leader involved in agitation against the bill is standing as an NPP candidate in the forthcoming parliamentary elections slated for November 14.

The CEB has confirmed the cancellation of its privatisation plans, ensuring the state retains control over power plants and the distribution network. The reversal occurs amid delays from the IMF on conducting its third review, which is now expected after the upcoming elections.

(With inputs from agencies.)