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Sri Lanka struggles to avert economic collapse over Mideast war
The government has cut fuel use and raised power costs as officials seek IMF approval for a $700 million payout.
- President Anura Kumara Dissanayake has rationed fuel and raised prices amid an International Monetary Fund review of Sri Lanka's $2.9 billion bailout loan before releasing a $700 million instalment.
- The prolonged Middle East war compounds the fallout from Cyclone Ditwah, which killed 641 people late last year and caused an estimated $4.1 billion in damage across Sri Lanka.
- At Colombo's Pettah night market, vendor Wasantha Jayalath said he voted for Dissanayake hoping for better times but now feels the country is "going further into an abyss," echoing 2022 when inflation hit 70 per cent.
- Human rights lawyer Bhavani Fonseka noted protests remain subdued as citizens focus on daily survival, while FSP member Duminda Nagamuwa said the government's strong mandate allows the public to absorb economic shocks without exploding politically.
- Citing worsening economic circumstances, authorities may ask the International Monetary Fund to modify austerity conditions, even as the government allocated 500 billion rupees for recovery including infrastructure rebuilding and cash handouts.
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In Sri Lanka, energy shortages revive the ghosts of the crisis of 2022 Admin FCE 04 Apr. 2026 - 06:31 As four years ago. In the streets of the Sri Lankan capital Colombo, the lines that stretch in front of the gas stations and the sharp rise in energy prices due to war in the Middle East revived the painful memories of the great crisis of 2022."Indeed, it's hard to bear," sighed Wasantha Jayalath, 55, a salesman at the city's night market. "I ha…
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Total News Sources22
Leaning Left1Leaning Right5Center7Last UpdatedBias Distribution54% Center
Bias Distribution
- 54% of the sources are Center
54% Center
C 54%
R 38%
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