COLOMBO (EconomyNext) – The reform needed most urgently needed in Sri Lanka’s electricity sector is efficient pricing and implementation of least-cost, long-term investment planning, the Asian Development Bank has said.
Efficient pricing and good governance are now being addressed effectively, if only in part, the bank said in a new report.
But the preconditions for real competition in the power sector still need to be put firmly in place, said the report that assessed reforms in the power sectors in Georgia, Sri Lanka, and Viet Nam.
The study was done to help improve the power-sector reform planning perspectives and to look into their comparative success and performance in achieving their targeted power reform outcomes.
“On the whole, the power sectors in Georgia, Sri Lanka, and Viet Nam each need continuing improvements in transparency, in economic efficiency, and in regulation, particularly in tariff-setting, system management, and effective independent regulation,” it said.
The ADB said that in Sri Lanka although a widely discussed tariff methodology and a price revision cycle are available, there is no indication about when they will be fully implemented.
“Prescribed monthly price adjustments nd changes to the structure of the tariff have been missed, ignored, or not implemented, without any announcement from the PUCSL (Public Utilities Commission of Sri Lanka).”