## Fuel Import Bill Surges Six-Fold: Fiscal Pressure Mounts 📈

President Anura Kumara Dissanayake has warned of intensifying economic strain as Sri Lanka’s monthly oil expenditure is projected to hit US$ 522 Mn this month, a massive increase from February levels. • Import Bill Trajectory (Provisional) • Feb: US$ 98 Mn • March: US$ 216 Mn • April: US$ 368 Mn • May (Projected): US$ 522 Mn • Sectoral Impact & Subsidies • Diesel Pricing: The current cost to CPC is Rs. 720/litre, but it is sold at Rs. 392/litre. • Fiscal Burden: The government absorbs approx. Rs. 100/litre, while the Ceylon Petroleum Corporation (CPC) faces a significant recovery gap. • Energy: Rising fuel costs have pressured electricity tariffs; while an 18% hike was implemented, 95% of consumers remain shielded from the full impact. • Economic Risks • Debt & Liquidity: Past mismanagement led to Rs. 84 Bn in CPC losses being transferred to the Treasury. • Forex Outflows: The President emphasized that current consumption levels are unsustainable at elevated global prices, accelerating US$ outflows. • Policy Outlook The government is moving toward stricter fuel management solutions and efficiency reforms for the CPC and CEB to reduce the reliance on Treasury subsidies and stabilize the national budget.