Sri Lanka's 2026 Fuel Import Bill Set to Soar Due to Geopolitical Instability

The Central Bank of Sri Lanka (CBSL) forecasts a significant increase in the nation's fuel import expenditure for 2026. This projection is attributed to ongoing Middle East geopolitical crises and anticipated instability in global oil markets, which are expected to keep international oil prices elevated. The Ceylon Petroleum Corporation (CPC) has also warned that domestic fuel prices may need to be adjusted upwards if regional conflicts continue to escalate. Sri Lanka currently spends an estimated USD 4.5 to 5 billion annually on fuel imports, which constitutes nearly 20% of its total import expenditure. This comes after a slight decrease in fuel import costs in 2025 (USD 4 billion) from 2024 (USD 4.4 billion), primarily due to lower unit prices of crude and refined petroleum.