📈 President Reassures Nation Amid Currency Pressure & Rising Fuel Imports

President Anura Kumara Dissanayake assured that the government is actively engaging with the IMF under the EFF program to stabilize the economy and prevent a repeat of the 2022 economic collapse, amid a strengthening US dollar and Middle East geopolitical shocks. Overall External & Dollar Pressures • Fuel Imports: Surged drastically from US$ 98 Mn in Feb to US$ 216 Mn in March, US$ 368 Mn in April, and peaked at US$ 522 Mn in May, heavily driving dollar demand. • Tourism: Inflows weakened with April tourist arrivals dropping by 29% YoY. • Exports & Remittances: Both export demand and workers' remittances showed a decline due to global economic uncertainty. • Fiscal Position: In contrast to dollar shortages, the domestic Treasury holds its highest surplus in history, allowing for a Rs. 500 Bn allocation for Cyclone Ditwah relief and over Rs. 100 Bn in fuel and electricity subsidies. Key Sectors & Government Directives • Energy & Utilities: Govt. is absorbing a Rs. 100 per litre fuel subsidy and a Rs. 15 Bn electricity subsidy through September, shielding 95% of consumers from tariff hikes. • Import & Consumption: Citizens are urged to collectively reduce fuel and import consumption to contain short-term forex outflows. • IMF Strategy: Proposals have been submitted to the IMF to manage the prevailing dollar pressure within the current EFF framework.