Sri Lanka Cabinet approves fuel subsidy to hold prices from March 22, 2026

The Cabinet of Ministers approved a fuel subsidy of Rs. 20 for petrol and Rs. 100 for diesel from March 22, 2026, to control rising prices in Sri Lanka.

The government of Sri Lanka has decided to provide financial support to fuel importers in order to prevent an increase in fuel prices for the public.

This decision comes into effect from March 22, 2026, if the import cost of fuel becomes higher than the current selling price.

According to the proposal approved by the Cabinet of Ministers, suppliers will receive up to Rs. 20 per liter for Octane 92 petrol and up to Rs. 100 per liter for auto diesel.

This measure is aimed at maintaining stable fuel prices despite rising global costs.

The decision was taken in response to the ongoing war-like situation in the Middle East, which has affected global fuel prices.

The government stated that it is taking steps to manage these external pressures and reduce their impact on the daily lives of people as well as on the national economy.

Special attention has been given to Octane 92 petrol and auto diesel, as they are widely used by the public and in public transportation.

By supporting importers, the government aims to avoid passing the increased costs directly onto consumers.

The proposal was submitted by the President Anura Kumara Dissanayake in his role as Minister of Finance, Planning and Economic Development, and received Cabinet approval as part of broader efforts to provide economic relief and maintain stability during uncertain global conditions.

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