Sri Lanka is planning to raise its electricity price consequent to a cabinet approval of the proposed rate hike, government spokesman Anura Yapa said Thursday.

Yapa told reporters that electricity consumers who consume more than 30 units (kilowatt-hours) per month would see their bills increased between 1-1.50 rupees (about 0.01 to 0.015 U.S. dollar) in addition to a further fuel surcharge of 20 percent.

He said the price hike has become mandatory in view of the massive losses incurred by the state power agency, the Ceylon Electricity Board (CEB).

Yapa said the CEB was making a daily loss to the tune of 4.5 million rupees (45,000 dollars) and therefore there was a need to increase the rates.

Although the minister did not say when the rate hike would come into effect, the officials of the Ministry of Power and Energy said the new rates would come into force from August 1.

The Sri Lankan government has also approved to fast track the CEB's reorganization program, Yapa said.

The CEB reforms to be funded by the Asian Development Bank and the Japanese Bank for International Co-operation have met with stiff resistance from the CEB trade unions.

The unions have resorted to strike actions at different times calling reforms as a plan to privatize the institution.

Source: Xinhua