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Thursday September 29th, 2022

Sri Lanka power regulator in court seeking US$200mn from central bank

ECONOMYNEXT – Sri Lanka’s power regulator has filed action in Supreme Court seeking 200 million US dollars to generate fuel as the island experiences power cuts of over 12 hours due to forex shortages.

Sri Lanka has a severe forex crisis due to money printed to keep interest rates down, and there is also a capacity deficit after coal plant which was about to be built was axed.

The central bank has run out of forex reserves after two years of money printing triggered excess demand creating balance of payments deficits and reserve losses.

The PUCSL says it has named Ministry of Finance, Secretary to the Treasury, Minister of Power and Energy, Monetary Board of the central bank, Central Bank Governor and Ceylon Electricity Board as respondents.

The regulator says relevant authorities have failed to take advice given since 2016 which would have helped prevent the current power crisis. (Colombo/Apr01/2022)

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