Sri Lanka tightens fuel rationing as supply squeeze deepens

Sri Lanka will introduce additional fuel‑rationing measures to shorten queues and secure extra oil supplies, a senior official said on Wednesday, as the island continues to manage shortages linked to the U.S.-Israeli war on Iran.

Schools, universities and government offices were shuttered around the country of 22 million people after the government declared a public holiday every Wednesday to help make its fuel supplies go further.

Train and bus services were also reduced to conserve fuel but hospitals and other essential services were operational.

Sri Lanka, which started fuel rationing last weekend, will also begin issuing fuel according to the last number of vehicle license plates, state-run Ceylon Petroleum Corporation (CPC) Chairman S. Rajakaruna told reporters in Colombo.

"If the last number on the license plate is an odd number and the date is also an odd number then you will be issued fuel. We are doing this to halve the lines at stations," he added.

Oil products accounted for about $4 billion of Sri Lanka's import bill last year, when the economy grew 5%.

Sri Lanka, still recovering from a financial crisis that peaked in 2022 caused by a shortfall of dollars, also issued fresh tenders to purchase 36,000 metric tons of petrol and 37,000 metric tons of diesel to be delivered in early April, documents posted on the CPC website showed.

Sri Lanka has also opened bids to purchase 95,000 metric tons of crude oil in parallel for its only refinery.

Emergency spot purchases were approved by the Cabinet to bridge a shortfall of over 90,000 metric tons of crude oil, President Anura Kumara Dissanayake said on Tuesday.

-Reporting by Uditha Jayasinghe, Editing by Louise Heavens/Reuters