Sri Lanka President warns Middle East conflict threatens energy supply

2026-03-17 - 16:23

Sri Lanka’s energy supply is facing pressure due to the ongoing conflict in the Middle East, prompting urgent government measures and increased fuel and gas imports, President Anura Kumara Dissanayake said. He noted that the conflict involving Iran, the United States, and Israel is expected to significantly impact Sri Lanka’s fuel, gas, and coal supplies. Addressing a special press conference today (March 17), the President said Sri Lanka will remain neutral and will not take sides in the conflict. He emphasized that the government has already made its position clear and is closely monitoring the situation. To manage potential risks, a special surveillance committee has been appointed to track global developments and assess their impact on the country’s energy sector. The government has also taken diplomatic-level steps and is continuing discussions with other countries to secure fuel, gas, and coal supplies. As an immediate measure, temporary permits have been issued to US dollar–earning businesses to import fuel and supply it to the tourism and export sectors from tomorrow (March 18). In addition, several emergency tenders have been called for diesel, crude oil, kerosene, and petrol, with bids already received from reliable suppliers. The President revealed that Sri Lanka is currently experiencing delays in fuel shipments. Two long-term tender shipments totaling 90,000 metric tonnes have not arrived on time, while another shipment from a private supplier is also delayed. He warned that even a delay in a single shipment could disrupt the entire system and lead to shortages. Despite these challenges, the government is maintaining sufficient fuel stocks for essential services. Ministries are also preparing a system to increase fuel allocations if necessary, particularly if the QR code system proves insufficient for critical sectors. The QR fuel system has already registered over five million users, although some minor issues are being addressed. The government has also instructed all ministries to reduce fuel usage by at least 25%. Measures have been introduced to maintain public services, including a revised work schedule of two days on duty, followed by one day off, and then two additional working days. On the gas supply front, President Dissanayake assured that sufficient stocks are being secured. He said that 38,000 metric tonnes of Litro LP gas have already been imported during March, exceeding the monthly requirement of 33,000 metric tonnes. This additional order was placed due to supply disruptions caused by a private company. He added that another shipment of 33,000 metric tonnes of LP gas is expected within the next two days, likely on March 18 or 19. With these supplies, the government expects to stabilize gas availability and meet current demand without shortages. Regarding crude oil, the President noted that shipments expected on April 6–7 have been delayed. However, current reserves are sufficient until April 15. He explained that limited storage capacity and refinery constraints require careful scheduling, as multiple ships cannot be handled simultaneously. Fuel shipments have been scheduled through suppliers including CPC, IOC, RM Parks, and Sinopec, while authorities are also reviewing whether adjustments are needed. He added that Sri Lanka can conduct fuel transactions in different currencies but must honor agreements with countries such as Russia. Meanwhile, addressing domestic electricity demand, the President said there is currently no need for power cuts under the existing plan. However, future decisions will depend on global developments beyond the country’s control. He urged electric vehicle owners to charge their vehicles during daytime hours, noting that electricity demand peaks between 6:00 p.m. and 10:00 p.m. Due to increased EV usage, peak-hour demand has risen by about 300 megawatts. Daytime charging would help reduce pressure on the national grid, particularly as excess electricity is available during the day. He also announced plans to introduce smart meters to enable different pricing for daytime and peak-hour electricity usage, encouraging consumption during off-peak hours. The President further noted that Sri Lanka generates a significant amount of solar power during the day; however, due to a lack of storage facilities, this energy must be used immediately, often resulting in surplus power that cannot be stored. In addition to energy concerns, the government is monitoring the food supply network ahead of the upcoming festive season. Authorities have confirmed the capacity to store essential food items for up to three months, and steps are being taken to prevent shortages. The President said the government is focusing on four key priorities: ensuring continuous energy supply, maintaining essential services, preparing the public service, and providing relief to affected communities. He reassured the public that there is no need to panic. He also stressed that efforts are underway to dismantle long-standing cartels and ensure a fair and transparent tender process, although minor issues may arise as new suppliers enter the system. Finally, the President said strict action will be taken against any misuse of authority by ministers, adding that any minister facing legal charges will be removed immediately. Overall, he emphasized that all necessary measures are being taken to safeguard energy stability and maintain essential services amid growing global uncertainty.