The Sri Lankan Cabinet has announced measures to address the ongoing energy crisis and economic challenges while confirming plans for the upcoming Vesak and Poson festivals. Despite energy conservation efforts, Cabinet Spokesman Dr. Nalinda Jayatissa clarified that there will be no electricity supply restrictions during these religious festivals. To manage energy consumption, the government has declared Wednesdays as public holidays for non-essential services and issued comprehensive guidelines for state institutions, including switching off air conditioning after 3:00 p.m. and advertising lights after 8:00 p.m. Local authorities are also instructed to coordinate with police when turning off street lights between 6:00 p.m. and 10:00 p.m., avoiding high-crime or accident-prone areas. Ministers and MPs have agreed to a voluntary 30% cut in their fuel quotas, with fuel allowances for officials to be based on March 1, 2026 prices.
[UPDATE] Parliamentarian D.V. Chanaka has claimed that only 40% of the country's existing fuel storage tanks are filled, despite sufficient capacity to store diesel for two months and ten days. He further alleged that while previous governments initiated renovation work on six fuel tanks in Kolonnawa and five oil tanks in Trincomalee, the current administration halted these projects for months, aiming to present them as new government initiatives.
Economically, the Public Utilities Commission of Sri Lanka (PUCSL) approved an overall 10% increase in electricity tariffs from April 1, with state institutions facing a 14.4% hike.
[UPDATE] For domestic consumers, the tariff for the 0-30 units category will increase by 4.3%, amounting to a monthly increase of Rs. 15. For the 31-60 units and 61-90 units categories, tariffs will rise by 6.9%, with the former seeing a monthly increase of Rs. 45.
Deputy Minister Eranga Gunasekara commented on the public burden caused by the electricity tariff increases, stating that the treasury has been filled by taxes on everyday items. He emphasized the existing energy sector challenges and the need to conserve 25% of the country's energy, with the government implementing various programs towards this goal.
This has led to an increase in food prices, with fried rice and kottu rising by Rs. 30, short eats by Rs. 10, and plain tea/milk tea by Rs. 5.
[UPDATE] Additionally, prices for parata and egg roti have also increased by Rs. 10.
The country also faces a projected shortage of Samba and Keeri Samba rice from May 2026, prompting cabinet approval for imports. The USD exchange rate has seen a significant rise, with the selling rate reaching Rs. 319.31, its highest in months.
The Central Bank of Sri Lanka (CBSL) has confirmed that the Sri Lanka Rupee depreciated by 1.6% against the US dollar in 2026. The selling rate for the US dollar stood at Rs. 319.31 at the close of trading on March 31, 2026, with the buying rate at Rs. 311.76. This depreciation is attributed to external sector pressures that emerged following the commencement of the Middle East conflict in late February 2026.
Furthermore, Urea fertilizer stocks are being prioritized for paddy cultivation due to regional instability, and new stocks are expected to be more expensive.
[UPDATE] Experts warn of a looming urea fertilizer crisis ahead of the 2026 Yala season, with just over 100,000 tonnes of fertilizer currently in stock, barely enough for paddy cultivation. With more than half of expected imports either cancelled or delayed, the government has moved to ration supplies through Agrarian Service Centres, based on last year’s usage.
In a bid to boost tourism, free tourist visas have been approved for 39 countries.
[UPDATE] Cabinet approval for issuing free tourist visas for a period of 6 months to passport holders from 39 selected countries was granted at a cabinet meeting held on July 21, 2025.
The National Vesak Festival will be held in Matara, centered around the Midellawala Purana Viharaya, with Vesak Week declared from May 27 to June 02.
[UPDATE] The 2026 National Vesak Festival will be held under the theme 'Abhittharetha Kalyane'.
Separately, the Police have initiated a special island-wide security program for the upcoming Sinhala and Tamil New Year festive season. Police Spokesperson, Assistant Superintendent of Police (ASP) F.U. Wootler, stated that this plan covers all 608 police stations and includes the deployment of over 10,000 officers for road safety and traffic checks. A specialized operation, supported by intelligence officers, is also in place to ensure the safety of citizens traveling to urban centers for festival activities.