Khaberni - Sri Lanka raised fuel prices by 25% on Sunday, in the second increase within two weeks, as the country prepares for additional fallout from the war in the Middle East.
The price of regular gasoline rose to 398 rupees ($1.30) per liter, compared to 317 rupees previously, while the price of diesel, widely used in public transport, increased by 79 rupees to 382 rupees.
Last week, the government had approved an 8% increase in fuel prices for consumers and imposed a rationing system to limit consumption.
An official from "Ceylon Petroleum" said that "the recent increase aims to reduce fuel consumption by between 15 and 20%".
He added that President Anura Kumara Dissanayaka informed them last week of the need to prepare for a prolonged conflict in the Middle East that could affect the island's energy supplies.
The president ordered a four-day work week starting from last Wednesday, urging employers to revert to working from home where possible.
The Strait of Hormuz is a crucial waterway through which about 20% of the world's oil exports pass under normal conditions, and Iran has effectively closed it in response to the war waged by the United States and Israel against it, which entered its fourth week.
Sri Lanka imports all its oil needs, and also relies on coal for electricity generation, while its refined petroleum products are secured from Asian countries and crude oil from the Middle East.
The government warned that the continuation of the war might undermine efforts to recover from the 2022 crisis when the country defaulted on its $46 billion debt before later securing a $2.9 billion rescue package from the International Monetary Fund.
