Sri Lanka has reduced fuel prices for the first time since the Middle East conflict triggered a surge in global energy costs, following the ceasefire and renewed diplomatic talks between the United States and Iran.
The state-run Petroleum Corporation announced that diesel prices have been reduced by 25 rupees per litre to 382 rupees, while petrol prices have been cut by 20 rupees to 414 rupees per litre.
The price adjustment follows a sharp decline in international oil prices after the United States and Iran agreed to hold talks aimed at ending their conflict.
Sri Lanka had previously increased fuel prices by nearly 50 percent following attacks on Iran by the United States and Israel, while electricity tariffs were also raised to reflect higher import costs.
The government says it remains cautious, warning that any prolonged instability in the Middle East could threaten the country’s fragile economic recovery. Sri Lanka is implementing fuel pricing reforms under a 2.9 billion dollar International Monetary Fund bailout programme aimed at restoring economic stability after its 2022 debt crisis.
