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Sri Lanka increases fuel prices to address economic crisis

Sri Lanka increased fuel prices on May 24, a long-flagged move to mend public finances and combat...

👤 H K Badal24 May 2022 5:33 PM GMT
Sri Lanka increases fuel prices to address economic crisis
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Sri Lanka increased fuel prices on May 24, a long-flagged move to mend public finances and combat its debilitating economic crisis, but the hikes are bound to add to galloping inflation at least in the short term.

Power and Energy Minister Kanchana Wijesekera said in a message on Twitter that petrol prices would increase by 20 to 24 per cent while diesel prices would rise by 35 to 38 per cent with immediate effect. Daily limits on how much each consumer can purchase will continue.

"The government will hold talks with transport sector stakeholders to increase costs parallel to the latest increases," he later said in an online cabinet briefing.

Fuel and transport price increases will inevitably flow through to food and other goods, economists said.

Annual inflation in the island nation rose to a record 33.8 per cent in April compared with 21.5 per cent in March, according to government data released on Monday.