Fuel Supply Issues Threaten Sri Lanka’s Bakery Sector 📈

The All Ceylon Bakery Owners Association (ACBOA) has flagged critical energy shortages affecting production nationwide. Despite rising operational hurdles, the association confirmed there are no immediate plans for price hikes. • Energy Dependency: The sector relies on a diverse energy mix, with 25% of bakeries using gas and 25-30% dependent on diesel and kerosene. The remainder utilizes firewood or alternative sources. • Logistical Hurdles: Current regulations restricting the sale of fuel in cans have disrupted supply chains, as many small-scale bakeries rely on this method to transport diesel and petrol for machinery. • Operational Risks: Beyond fuel, the industry is grappling with a countrywide shortage of gas, rising gas prices, and localized power outages, which collectively threaten daily production stability. • Key Request: The ACBOA is urging the Government to implement a special mechanism allowing the purchase of fuel in containers to ensure the food processing and retail sector remains functional.