Sri Lanka Raises Fuel Prices to Meet IMF Loan Conditions

COLOMBO (CNA) - The Sri Lankan government announced on Friday that it will raise fuel prices by up to 6% to comply with International Monetary Fund (IMF) loan requirements, which mandate the gradual removal of energy subsidies to stabilize the national economy. The state-run Ceylon Petroleum Corporation stated that gasoline prices will rise from 410 rupees to 434 rupees per liter, while diesel will increase from 392 to 407 rupees. Excessive energy subsidies were a key factor in the country's fiscal collapse and sovereign debt default. As part of a $2.9 billion, four-year bailout agreement reached in early 2023, Sri Lanka is committed to phasing out these subsidies. President Anura Kumara Dissanayake has informed the IMF that all fuel subsidies will be fully eliminated by September this year.