President Anura Kumara Dissanayake has stated that Sri Lanka is facing a crisis in the energy sector, citing rising global fuel and coal prices along with declining water levels in reservoirs.
Addressing the National People’s Power (NPP) Colombo District May Day rally, the President said the government is currently providing a subsidy of Rs. 100 per litre on diesel to ease the burden on the public.
“Today, the actual cost of a litre of diesel is Rs. 482, but consumers are able to purchase it at Rs. 382 because the government provides a subsidy of Rs. 100 per litre through the Petroleum Corporation and other institutions,” he said.
He noted that the government has allocated Rs. 60 billion to sustain fuel subsidies despite continued increases in global prices.
While acknowledging that limited fuel price adjustments may be required in the future, the President stressed that efforts are being made to provide maximum possible relief.
“There is a crisis in the energy sector; coal prices have risen, and fuel prices have gone up. We may have to implement small-scale fuel price increases, but we are working to provide the maximum possible subsidies,” he said.
The President also highlighted challenges in the electricity sector, pointing to rising coal costs and reduced reservoir water levels, which have increased pressure on power generation.
He added that the government has decided to provide electricity subsidies to 96% of consumers without increasing tariffs, allocating Rs. 15 billion for this purpose.