Sri Lanka’s Fuel Import Bill May Rise Significantly: Central Bank

26-Apr-2026

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The Central Bank of Sri Lanka has warned that the country’s fuel import costs are likely to remain at elevated levels in the coming period due to geopolitical tensions in the Middle East and instability in the global oil market.

The Bank noted that fuel imports account for a major share of Sri Lanka’s total import expenditure, and over the past 10 years, around 20% of total imports on average have been spent on fuel.

According to the Central Bank’s economic research report, although crude oil and refined petroleum import volumes increased in 2025, total expenditure declined from USD 4.4 billion in 2024 to USD 4.0 billion in 2025.

This reduction was mainly attributed to lower prices of crude oil, refined petroleum and coal. In line with international price changes, the average import price per barrel of crude oil fell from USD 84.7 in 2024 to USD 73.2 in 2025.

Meanwhile, a fuel price adjustment mechanism reflecting actual costs remained in effect throughout 2025, allowing global price fluctuations to be directly reflected in the domestic market. Accordingly, compared to the end of 2024, by the end of 2025 the prices of Octane 92 petrol, auto diesel and kerosene sold by the Ceylon Petroleum Corporation were reduced by Rs. 15, Rs. 9 and Rs. 8 respectively.

The report further states that with the growth in economic activity, sales of petroleum products increased by 7.4% in 2025.

However, due to geopolitical pressure stemming from the conflict situation in the Middle East, fuel prices were significantly increased in March 2026 outside the normal pricing framework.