Government Announces Rs. 41 Billion Fuel Subsidy for Three Months
GAMPAHA, September 27, 2026 — President Anura Kumara Dissanayake has announced that the Government will introduce a Rs. 41 billion fuel subsidy covering the next three months, as authorities seek to ease pressure on households amid elevated fuel and commodity prices.
Speaking at a public rally in Gampaha today, the President said the subsidy would apply during October, November and December, with the relevant Cabinet paper scheduled to be presented on September 28.
The announcement comes as Sri Lanka continues to face pressure from higher global energy and commodity prices, which have contributed to increased living costs and placed additional pressure on household budgets.
The Government’s decision also comes against the backdrop of Sri Lanka’s ongoing engagement with the International Monetary Fund (IMF). During its recent discussions with the country, the IMF said any fiscal measures introduced to address higher fuel and commodity prices should be temporary, targeted at vulnerable groups and carefully costed.
The three-month subsidy is expected to provide short-term relief to consumers and businesses affected by higher fuel costs, while the Government will need to manage the fiscal impact of the programme.
At the Gampaha rally, President Dissanayake also addressed political criticism of the Government, saying public support remained the key source of its political strength. He argued that political power ultimately belonged to the people and that the Government could not be toppled as long as it retained their confidence.
The President also rejected allegations that the Government’s ongoing investigations into suspected corruption were politically motivated.
He said the Government had no intention of pursuing political revenge against individuals, while noting that some investigations were complex and required assistance from international agencies.
The fuel subsidy is now set to become a key short-term measure as the Government attempts to balance cost-of-living relief with fiscal discipline under Sri Lanka’s broader economic reform programme.
