AIRLINK 60.51 Increased By ▲ 0.31 (0.51%)
BOP 6.30 Increased By ▲ 0.05 (0.8%)
CNERGY 4.46 Increased By ▲ 0.40 (9.85%)
DFML 16.11 Increased By ▲ 0.36 (2.29%)
DGKC 69.67 Increased By ▲ 1.42 (2.08%)
FCCL 18.16 Increased By ▲ 0.54 (3.06%)
FFBL 26.16 Increased By ▲ 0.66 (2.59%)
FFL 9.20 Increased By ▲ 0.11 (1.21%)
GGL 10.03 Increased By ▲ 0.18 (1.83%)
HBL 116.70 Increased By ▲ 1.70 (1.48%)
HUBC 112.49 Increased By ▲ 0.49 (0.44%)
HUMNL 6.71 Increased By ▲ 0.16 (2.44%)
KEL 4.62 Increased By ▲ 0.09 (1.99%)
KOSM 4.70 Increased By ▲ 0.18 (3.98%)
MLCF 38.65 Increased By ▲ 0.75 (1.98%)
OGDC 123.80 Increased By ▲ 3.25 (2.7%)
PAEL 22.18 Increased By ▲ 0.43 (1.98%)
PIAA 10.96 Increased By ▲ 0.06 (0.55%)
PIBTL 6.20 Increased By ▲ 0.18 (2.99%)
PPL 108.88 Increased By ▲ 2.08 (1.95%)
PRL 28.15 Increased By ▲ 0.80 (2.93%)
PTC 11.10 Increased By ▲ 0.55 (5.21%)
SEARL 52.43 Increased By ▲ 0.43 (0.83%)
SNGP 67.97 Increased By ▲ 1.07 (1.6%)
SSGC 11.67 Increased By ▲ 0.14 (1.21%)
TELE 8.07 Increased By ▲ 1.02 (14.47%)
TPLP 11.74 Increased By ▲ 0.18 (1.56%)
TRG 75.71 Decreased By ▼ -5.04 (-6.24%)
UNITY 22.75 Increased By ▲ 1.60 (7.57%)
WTL 1.30 Increased By ▲ 0.03 (2.36%)
BR100 6,553 Increased By 69 (1.06%)
BR30 22,389 Increased By 290.7 (1.32%)
KSE100 63,768 Increased By 548.7 (0.87%)
KSE30 21,498 Increased By 192.5 (0.9%)

COLOMBO: A key fuel retailer in Sri Lanka raised prices by up to 35 percent on Monday as the cash-strapped government was set to open crucial bailout talks with the International Monetary Fund.

Sri Lanka is in the grip of its worst economic crisis since independence from Britain in 1948. It has led to shortages of fuel, food and essential medicines.

Lanka IOC, a fuel retailer which accounts for a third of the local market, said it raised the diesel price by 75 rupees to 327 a litre while petrol was increased by 35 rupees to 367 rupees ($1.20).

The state-run Ceylon Petroleum Corporation, which accounts for two-thirds of the market and imposed fuel rationing last week, did not immediately raise its prices, but most of its pumping stations were without fuel.

Lanka IOC, a local unit of the Indian Oil Corporation, said the sharp depreciation of the local currency forced it to carry out the latest revision, three weeks after a 20 percent hike.

Since the start of the year, petrol prices have increased by 90 percent while diesel – commonly used for public transport – has gone up by 138 percent.


Also read

Sri Lanka defaults on entire $51 billion external debt

Sri Lanka doubles interest rates to tame inflation as crisis bites


“The rupee devaluation by more than 60 percent during last one month compelled Lanka IOC to again increase its retail selling prices with effect from today,” the company said.

The increase came as Sri Lanka’s new finance minister Ali Sabry led a delegation to Washington seeking between $3 billion and $4 billion from the IMF to overcome the balance-of-payments crisis and boost depleted reserves.

The government last week announced a sovereign default on its huge foreign debt and the Colombo Stock Exchange announced trading would be halted for five days from Monday amid fears of a market collapse.

Sri Lanka was in a deep economic crisis when the Covid-19 pandemic hit, reducing foreign-worker remittances and crippling the lucrative tourism sector – a key source of dollars for the economy.

The government imposed a broad import ban in March 2020 to save foreign currency. It is now facing record inflation.

Comments

Comments are closed.