President warns fuel import bill has surged six-fold since February

Thursday, 14 May 2026 00:21 - - {{hitsCtrl.values.hits}}

President Anura Kumara Dissanayake

Oil bill in Feb. was $ 98 m, increased to $ 216 m in March, $ 368 m in April, with May projected at $ 522 m
Diesel litre costs CPC Rs. 720 per litre, sold to consumers at Rs. 392

President Anura Kumara Dissanayake yesterday warned of mounting pressure on Sri Lanka’s economy as the country’s oil import bill surged more than six-fold between February and May amid rising global energy prices and growing subsidy costs.

This comes as the Central Bank of Sri Lanka (CBSL) and the International Monetary Fund (IMF) continue to push for cost-reflective pricing to maintain critical fiscal buffers.

Speaking at the Nuwara Eliya District Special Coordinating Committee meeting, the President said oil imports had risen from $ 98 million in February to $ 216 million in March and $ 368 million in April, with May imports projected to reach $ 522 million.

“Compared with February, oil imports have increased more than six times,” he said, highlighting the growing strain on foreign exchange outflows.

The President said the actual cost of a litre of diesel was around Rs. 720, while it continued to be sold to consumers at Rs. 392, resulting in substantial losses being absorbed by the Government and the Ceylon Petroleum Corporation (CPC).

According to the President, although the Government bears around Rs. 100 per litre, the CPC receives only Rs. 492 per litre, significantly below cost-recovery levels.

He said past mismanagement had left the CPC with losses amounting to Rs. 84 billion, which had subsequently been transferred to the Treasury.

President Dissanayake also noted that electricity tariffs had come under pressure from rising fuel costs. While tariffs were increased by 18%, he said more than 95% of consumers had been protected from the full impact, with only around 5% facing higher charges.

However, he cautioned that the Treasury could not continue indefinitely subsidising both the CPC and the Ceylon Electricity Board (CEB).

“They need to be made efficient, and other matters must be managed in ways that benefit the people,” he said.

The President also stressed the need to reduce fuel consumption, warning that maintaining existing consumption levels at elevated prices would accelerate dollar outflows and place additional pressure on the economy.

He said the Government had already taken measures aimed at curbing fuel consumption and was working to introduce further fuel management solutions in the near term.