Sajith urges Govt. to reduce fuel taxes after India cuts excise duties

Saturday, 28 March 2026 00:47 - - {{hitsCtrl.values.hits}}

President in Parliament a week ago said tax relief was being considered

Opposition Leader Sajith Premadasa

Opposition Leader Sajith Premadasa yesterday called on the Government to reduce fuel taxes in Sri Lanka, following India’s decision to cut special excise duties on petrol and diesel.

In a post on X, Premadasa said the Narendra Modi-led Government had moved to reduce the Special Additional Excise Duty on petrol and completely remove it on diesel to cushion the hardship faced by Indian consumers. He added that it is “high time for AKD to keep up to his election promise and follow suit.”

Addressing Parliament a week ago, President Anura Kumara Dissanayake said the Government was reviewing the matter.

“Monthly tax revenue from fuel is about Rs. 20 billion,” he told Parliament, adding that diesel alone generated Rs. 240 billion last year, while the Ceylon Petroleum Corporation (CPC) carries significant debt.

“We are considering providing relief through taxes. However, both IMF policy and our own policy emphasise targeted subsidies rather than general ones,” he said, adding that implementation would be difficult given the scale of the informal economy. “The informal economy is large and complex. Therefore, we are considering both aspects,” he said.