<ul><li>Govt warns subsidies may end as early as 1 May without approval</li><li>Rs. 20 b monthly burden could be transferred to consumers</li><li>Middle East tensions add uncertainty to fuel pricing decisions</li></ul> Fuel prices could rise further in the coming weeks, with the Government warning it may be left with no choice but to pass on subsidy costs to consumers if it fails to secure International Monetary Fund (IMF) approval to continue the current pricing arrangement.Speaking to The Daily Morning yesterday (23), Ministry Secretary Prof. Udayanga Hemapala said the Government will, for now, continue to absorb part of the fuel cost, amounting to Rs. 100 per litre of diesel and Rs. 20 per litre of petrol, until 1 May. However, he stressed that any extension beyond that date hinges on both developments in the Middle East and IMF approval.“If the situation in the Middle East continues and we receive IMF approval, we can continue this. If the IMF does not grant approval, we cannot continue it. In that case, we will have to add that portion to the fuel prices,” he said.When asked about a timeline for the IMF’s decision, Prof. Hemapala said an IMF delegation is expected to visit Sri Lanka in the coming days, during which the Government hopes to receive clarity on the matter.Cabinet Spokesperson Dr. Nalinda Jayatissa said on 22 March that the Government is currently absorbing approximately Rs. 20 billion per month to cushion the impact of fuel costs on consumers. This includes Rs. 100 per litre of diesel and Rs. 20 per litre of petrol. He warned that if the State were to bear the full cost of fuel imports, it would result in an additional annual expenditure of around US Dollars 1.5 billion, placing significant strain on both the fuel sector and the broader economy.Meanwhile, the Ceylon Petroleum Corporation revised fuel prices with effect from midnight on 21 March, the latest in a series of increases in recent weeks. Under the new pricing, 92 Octane petrol rose by Rs. 75 to Rs. 375 per litre, while 95 Octane petrol increased by Rs. 95 to Rs. 450 per litre. Auto diesel was raised by Rs. 75 to Rs. 350 per litre, and Super Diesel by Rs. 80 to Rs. 420 per litre.&nbsp;

As IMF decision looms: Fuel subsidy on the line

Pharmaceutical manufacturers have warned of an imminent increase in medicine prices, citing soaring fuel costs, rising raw material prices, and escalating freight charges that have made current pricing unsustainable.The Sri Lanka Pharmaceutical Manufacturers’ Association (SLPMA) said yesterday (23) that it will be compelled to seek a price revision from both the Government and the private sector once existing stocks of raw materials are exhausted.Responding to queries from The Daily Morning, SLPMA President Nalin Kannangara said that manufacturers are currently relying on previously purchased raw materials, allowing them to maintain existing prices only for a limited period.“Everything has now reached a point where we cannot continue manufacturing and supplying to either the Government or private sector at the old prices,” he said. “The cost of raw materials, mostly imported from India, along with freight charges, has increased significantly. We will have to adjust our prices at least to cover manufacturing costs.”Kannangara noted that suppliers of pharmaceutical raw materials have also indicated that they are unable to continue providing inputs at previous rates, further compounding the pressure on local manufacturers.He warned that while there may not be an immediate price increase, the situation is expected to change within the next two to four weeks as existing inventories are depleted.“At present, local manufacturers are operating on old stocks. Once these are used up, we will have no option but to request a price increase for our products from both the Government and private sector,” he said, adding that the industry is not seeking excessive profit margins but merely aiming to offset rising production costs.The warning comes amid a broader economic strain triggered by the ongoing Middle East crisis, which has driven up global fuel prices and disrupted supply chains, affecting multiple sectors across Sri Lanka.Despite the mounting challenges, Kannangara assured that local pharmaceutical companies are striving to maintain a steady supply of medicines to both State and private healthcare providers.“There could be minor shortfalls due to delays in the arrival of raw materials, but we are committed to continuing our supplies,” he said.

Costly manufacturing: Pharma industry seeks price hike

Former Minister Arjuna Ranatunga and the former Chairperson of the Ceylon Petroleum Corporation (CPC) Dhammika Ranatunga were served indictments before the Colombo High Court yesterday (23), on a corruption charge.&nbsp;The Court then ordered the defendants to be released on two surety bonds of Rs. 5 million each. The case was then ordered to be called for a pre-trial conference on 15 May.&nbsp;The defendants are accused of causing a loss of nearly Rs. 800 million to the CPC by canceling three long-term tenders that were scheduled to be used to purchase fuel for the country for a period of six months in 2017-2018 and instead arranging for 27 spot tenders to be implemented at higher prices, and of aiding and abetting in the same.

CPC corruption case: Arjuna and Dhammika indicted 

<ul><li>Minimum fare hiked to Rs 30</li></ul> Bus fares were hiked by 12.19% from midnight yesterday (23), after a near standstill in private bus services left thousands of commuters stranded across the country.The disruption unfolded yesterday morning, with long queues reported at major bus terminals as private operators withdrew from service pending a fare revision. The move came in response to last week’s fuel price increase, which operators said had made it impossible to continue under the previous fare structure.Under the new revision, the minimum fare rises from Rs. 27 to Rs. 30, while the maximum fare increases by Rs. 263, from Rs. 2,159 to Rs. 2,422.Cabinet Spokesperson Dr. Nalinda Jayatissa confirmed the increase, while the National Transport Commission (NTC) noted the fuel price hike had pushed the existing fare formula beyond the 10% threshold required for a revision. A Cabinet paper on the matter was submitted yesterday, with approval granted within the day, paving the way for the new fare structure.Following the announcement, the Lanka Private Bus Owners’ Association (LPBOA) said services would resume as normal from today (24).Despite this, commuters bore the brunt of yesterday’s disruption. The NTC confirmed a shortage of buses in several areas, with expressway services coming to a complete halt, forcing passengers onto regular routes. However, Sri Lanka Transport Board (SLTB) buses continued to operate as usual.Bus unions maintained that their withdrawal was not a strike but a necessity driven by mounting losses. LPBOA President Gemunu Wijeratne said more than 90% of private buses had remained off the roads, stressing that operators could not sustain services amid rising fuel and maintenance costs.“This is a business. No one can work without an income,” he said, noting that short-distance routes incur losses of Rs. 5,000 to Rs. 6,000 per day, while long-distance services lose between Rs. 15,000 and Rs. 20,000.He also criticised delays in securing Cabinet approval for fare revisions, arguing that previous governments had acted more swiftly. “Without discussions with us, it will be difficult to move forward,” he added.Wijeratne further clarified that school transport services, including ‘Sisu Sariya’, continued without disruption.Similarly, Inter Provincial Bus Owners’ Association President Sarath Wijitha Kumara said operators had no choice but to suspend services until fares were increased, reiterating that the move should not be interpreted as a strike.The standoff underscores the growing pressure on public transport services amid rising fuel costs, with yesterday’s disruption exposing the immediate impact on daily commuters.

Bus fares up by 12.19%; LPBOA abandons strike  

<ul><li>Says Strait of Hormuz accessible to SL</li><li>‘We don’t want SL to suffer’&nbsp;</li></ul>Iran offered to supply emergency oil and essential goods to Sri Lanka, signalling its readiness to support the island nation as it faces mounting energy concerns linked to the escalating conflict in the Middle East.Speaking at a media briefing in Colombo yesterday (23), Iranian Ambassador to Sri Lanka Dr. Alireza Delkhosh said Tehran would step in to ensure that Sri Lanka does not face fuel shortages or power disruptions.“Sri Lanka is our friend country,” Delkhosh told reporters. “In any case, if Sri Lanka requests oil or any other necessary goods, Iran will supply and provide these to Sri Lanka. We do not want to see Sri Lanka in trouble.”His remarks come as Iran has declared the Strait of Hormuz, a critical global oil transit route, a 'war zone'. Clarifying the situation, the Ambassador said access would remain open for friendly nations.“While the Strait is closed for hostile countries, friendly countries like Sri Lanka can use it, and we are ready to provide the necessary support, including escorting vessels if required,” he indicated.The Ambassador’s comments were delivered against the backdrop of the controversial sinking of the Iranian naval vessel IRIS Dena earlier this month, which Tehran alleges was targeted by a United States submarine while positioned approximately 1,100 nautical miles from any active battlefield.Providing details, Delkhosh said the vessel had not been engaged in combat operations at the time of the incident.“According to our information, IRIS Dena was not ready for war. It was not here for conflict,” he said. “It had participated in peaceful exercises in India, and during its presence there in February, it was invited by the Sri Lankan side to come to Sri Lankan waters for a friendly visit.”He further alleged that the attack was carried out without prior warning.“They attacked it without any war, without any alert,” Delkhosh said, adding that many of those killed were not combat personnel. “Most of these killed people were not armed personnel, they were part of a musical band.”According to Iranian officials, 104 unarmed sailors were killed in the incident.Addressing reports that the vessel had sought permission to enter Sri Lankan waters prior to the attack, and that there had been a delay in granting such clearance, the Ambassador said Iran had only recently become aware of those claims.“According to our information, IRIS Dena was in an urgent position and asked for permission to enter the waters,” he said. However, he added, “I don’t have any documentary and confirmed information whether they asked for urgent permission or not.”Delkhosh, however, stressed that, irrespective of geopolitical considerations, countries have obligations under international norms.“According to international humanitarian law, all countries, including neutral countries, have some responsibility to give help to other ships,” he said. “Neutral or non-neutral, all countries should have some responsibility, even from a humanitarian point of view.”Responding to questions regarding the condition of injured personnel from IRIS Dena and IRIS Bushehr, the Ambassador said the majority of the wounded were recovering.“The wounded persons fortunately are good, except two or three of them,” he said. “The others are in a good situation and they don’t have any serious problems.”He added that Iranian personnel currently in Sri Lanka were being well looked after, but were eager to return home.“They are good and they are happy, no problem, no issue,” he said. “Just their worry is that they are separated from their family and they want to come back as soon as possible.”Delkhosh noted that Iran is in discussions with Sri Lankan authorities to facilitate repatriation efforts.“We are talking and we are following this issue with the Sri Lankan Government, and I do hope that we can solve this problem as soon as possible,” he said.He also pointed out that, according to Indian authorities, more than 100 Iranian sailors had already been repatriated to Iran last Friday.Delkhosh also expressed appreciation for the Sri Lankan Government’s handling of Iranian personnel currently in the country.“We are thankful to the Sri Lankan Government for the very good hospitality. Sri Lanka is a very hospitable country and we do not have any issue or problem,” he said.Beyond the immediate crisis, the Ambassador assured that Sri Lankan nationals in Iran remain safe.“If they request, we are ready to facilitate their return through Turkey or Armenia,” he said.He further said that the existing Tea for Oil barter arrangement between the two countries has been temporarily suspended due to instability affecting port operations, but expressed confidence that it would resume once conditions stabilise.The Sri Lankan Ministry of Foreign Affairs had not issued an official response at the time of publication regarding Iran’s offer of emergency fuel supplies or the Ambassador’s remarks on the IRIS Dena incident.

Iran offers emergency fuel support to Sri Lanka

The price of a 450-gram loaf of bread was increased by Rs. 10 with effect from yesterday midnight (23), according to the All Ceylon Bakery Owners’ Association. Accordingly, a loaf of bread will be sold for Rs. 130 from today.Meanwhile, the Association said the price of other bakery products will also be increased by Rs. 10 with effect from midnight.The increase in prices comes after the Government increased the prices of petrol and diesel in recent days amidst the ongoing conflict in the Middle East.&nbsp;

Bread, baked goods up by Rs. 10

<ul><li>Says 11 m oil barrels lost per day&nbsp;</li></ul>The war in the Middle East (ME) could plunge the world into its worst energy crisis in decades, the International Energy Agency’s (IEA) Executive Director (ED) Fatih Birol warned yesterday (23), describing the situation as “very severe”.Speaking at the National Press Club in Canberra, Australia, Birol said that the current crisis has already surpassed the scale of the two devastating oil shocks of the 1970s — combined. “Many of us remember the two consecutive oil crises in the 1970s... at that time, in each of the crises, the world lost about five million barrels per day — both of them together, 10 million barrels per day,” he said. “As of today, we have lost 11 million barrels per day — more than two major oil shocks put together.”Birol warned that the global economy now faces a “major, major threat” and that no nation would be spared if the crisis deepens. “No country will be immune to the effects of this crisis if it continues to go in this direction. So, there is a need for global efforts,” he said, adding that he “very much hopes” that the situation is resolved as soon as possible.The energy warning comes amid a broader conflict that has engulfed the ME following a significant escalation in hostilities involving Iran. The war, which has drawn in multiple regional actors, has severely disrupted oil production and supply routes critical to global energy markets. Iran, one of the world’s major oil producers and a key player in the Persian Gulf region, has been at the centre of the conflict. Hostilities have threatened the free flow of oil through the Strait of Hormuz — the narrow waterway through which roughly 20 per cent of global oil supplies pass — raising fears of prolonged supply disruptions. The conflict has also prompted Israeli military strikes on Iranian energy infrastructure, including a key gas field, sending energy prices sharply higher and fueling concerns among Western Governments and international institutions about the long-term stability of global energy supplies.Arab News

Worst energy crisis since ‘70s: IEA

Three-wheeler fares were increased yesterday (23) following the recent revision in fuel prices announced by the Government.Accordingly, the fare for the first kilometre has been increased from Rs. 100 to Rs.110 while three-wheeler operators will charge Rs. 90 for each additional km, the Road Passenger Transport Authority of the Western Province stated.

3-wheeler fares hiked

President Anura Kumara Dissanayake instructed officials to take all possible measures to safeguard the country’s energy conservation by raising public awareness on the prudent use of energy during the peak consumption period between 6 p.m. to 10 p.m., while ensuring the active participation of the public in these efforts.&nbsp;The President emphasised that in the face of the global challenge of maintaining uninterrupted energy supplies arising from the conflict in the Middle East, it is the collective responsibility of all institutions and individuals to make the fullest possible contribution towards overcoming this challenge through the prudent and efficient management of energy use.President Dissanayake made these remarks while participating in a discussion held yesterday (23) at the Presidential Secretariat to review further measures that could be taken to ensure energy conservation.The discussion focused on further operationalising the measures already taken by the Government in recent weeks to manage energy consumption, with particular attention given to the development of clear guidelines for the public service.The President also instructed that discussions be held with Local Government (LG) institutions to identify measures to ensure the systematic management of energy consumption at that level.It was also noted that significant amounts of electricity are consumed by advertising billboards and other decorative lighting systems and that restricting their use could result in substantial savings in the country’s overall electricity consumption.The discussion further considered proposals put forward by the Transport and Highways Ministry to reduce the use of non-essential street lighting in urban areas and to enhance energy management.In this regard, the President further emphasised the need for all relevant stakeholders to engage in discussions to identify viable alternative approaches and to expedite the implementation of appropriate measures.

As IMF decision looms: Fuel subsidy on the line

Costly manufacturing: Pharma industry seeks price hike

Costly manufacturing: Pharma i ...

CPC corruption case: Arjuna and Dhammika indicted

CPC corruption case: Arjuna an ...

Bus fares up by 12.19%; LPBOA abandons strike

Bus fares up by 12.19%; LPBOA ...

Iran offers emergency fuel support to Sri Lanka

Iran offers emergency fuel sup ...

Bread, baked goods up by Rs. 10

Bread, baked goods up by Rs. 1 ...

Worst energy crisis since ‘70s: IEA

Worst energy crisis since ‘70s ...

3-wheeler fares hiked

3-wheeler fares hiked

President urges 6-10 p.m. energy conservation

President urges 6-10 p.m. ener ...

Costly manufacturing: Pharma industry seeks price hike

Costly manufacturing: Pharma i ...

CPC corruption case: Arjuna and Dhammika indicted

CPC corruption case: Arjuna an ...

Bus fares up by 12.19%; LPBOA abandons strike

Bus fares up by 12.19%; LPBOA ...

Iran offers emergency fuel support to Sri Lanka

Iran offers emergency fuel sup ...

Bread, baked goods up by Rs. 10

Bread, baked goods up by Rs. 1 ...

Worst energy crisis since ‘70s: IEA

Worst energy crisis since ‘70s ...

3-wheeler fares hiked

3-wheeler fares hiked

President urges 6-10 p.m. energy conservation

President urges 6-10 p.m. ener ...

Bringing the news paper to your fingertips

Costly manufacturing: Pharma industry seeks price hike

Costly manufacturing: Pharma i ...

CPC corruption case: Arjuna and Dhammika indicted

CPC corruption case: Arjuna an ...

Bringing the news paper to your fingertips

Bus fares up by 12.19%; LPBOA abandons strike

Bus fares up by 12.19%; LPBOA ...

Iran offers emergency fuel support to Sri Lanka

Iran offers emergency fuel sup ...

Bread, baked goods up by Rs. 10

Bread, baked goods up by Rs. 1 ...

Worst energy crisis since ‘70s: IEA

Worst energy crisis since ‘70s ...