ECONOMYNEXT — Sri Lanka’s Cabinet of Ministers has approved a relief package, including fuel subsidies for public transport and direct cash transfers, to shield certain sections of society from rising energy costs triggered by the escalating conflict in West Asia.
“The government has decided to intervene directly to minimize the impact of global fuel price hikes on the daily lives of our people and the overall economy,” Cabinet Spokesman and Minister of Foreign Affairs, Foreign Employment, and Tourism Vijitha Herath told reporters.
Under the new measures, the government will provide a subsidy of Rs. 20 per liter for 92 Octane petrol used in public transport and Rs. 100 per liter for Auto Diesel.
To prevent a spike in electricity bills, the state will absorb the additional costs incurred by thermal power generation—which has increased due to both rising fuel prices and dry weather. This relief will be extended for three months to consumers using fewer than 90 units per month.
The government will also provide a one-time special allowance for April 2026 to families registered under the Aswesuma welfare program:
Extreme Poor: Rs. 7,500 per family
Poor: Rs. 5,000 per family
Transitional: Rs. 2,500 per family
Agriculture and Fisheries
To ensure food security and support rural livelihoods, the fertilizer subsidy for the Yala season has been increased from Rs. 25,000 to Rs. 30,000 per hectare.
For additional crops grown in paddy fields, the subsidy rises to Rs. 18,000.
Furthermore, a 50kg bundle of urea fertilizer will be made available through Agricultural Service Centers at a fixed price of Rs. 10,200.
Small tea growers, who currently receive a Rs. 4,000 subsidy from the Tea Board, will receive an additional one-time fertilizer allowance of Rs. 5,000.
For the fisheries sector, the government approved:
A fuel subsidy of Rs. 50 per liter for one-day fishing boats (up to 25 days a month for three months).
A lump sum allowance of Rs. 150,000 for multi-day fishing vessels to cover costs over the next three months.
The measures come as global oil markets remain volatile, with the Sri Lankan government attempting to balance fiscal discipline with the need to protect the domestic economy from external shocks. (Colombo/Apr7/2026)