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Sri Lanka’s oil import bill has risen more than six times between February and May, President Anura Kumara Dissanayake revealed, warning of mounting economic challenges. He noted that while the actual cost of a litre of diesel is around Rs. 720, it is being supplied to the public at Rs. 392, leaving the government and the Ceylon Petroleum Corporation (CPC) to absorb heavy losses. Speaking at the Nuwara Eliya District Special Coordinating Committee meeting, the President said oil imports cost USD 98 million in February, USD 216 million in March, USD 368 million in April, and are projected to reach USD 522 million in May. “Compared with February, oil imports have increased more than six times,” he stressed. He explained that although the government bears Rs. 100 per litre, the Petroleum Corporation receives only Rs. 492, far below the actual cost, resulting in significant losses. Past mismanagement, he said, has left the CPC with a deficit of Rs. 84 billion, now transferred to the Treasury. President Dissanaya further said that electricity tariffs have also been affected by rising oil prices. The President noted that while bills increased by 18%, more than 95% of consumers were shielded from the impact, with only about 5% experiencing higher costs. However, he cautioned that the Treasury cannot indefinitely subsidize the Petroleum Corporation and the Electricity Board. “They need to be made efficient, and other matters must be managed in ways that benefit the people,” he said. The President stressed the need to reduce fuel consumption, pointing out that unchanged usage at higher prices would only accelerate dollar outflows. He said the government has already taken decisions aimed at curbing consumption and is working to provide solutions on fuel management swiftly. (Newswire)

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