⛽ Govt. Mulls Fuel Subsidy to Cushion Anticipated October Price Hike

• Overview: President Anura Kumara Dissanayake announced that the Sri Lankan Government expects to provide a subsidy to ease the public burden ahead of a possible fuel price increase scheduled for 1 October 2026. • Key Drivers: The anticipated upward revision in domestic fuel costs is driven by rising global market import prices calculated under the existing pricing formula. • Economic Impact: Rather than passing the full cost adjustment to consumers, the Government plans to intervene with targeted support to cushion household budgets and minimize broader inflationary pressures on the local economy.