Sri Lanka allocates 45 mln USD for October diesel subsidy

The Sri Lankan government has allocated 15 billion Sri Lankan rupees (about 45.3 million U.S. dollars) for a diesel subsidy in October as part of a three-month relief package aimed at cushioning consumers from rising global fuel prices amid the ongoing conflict in the Middle East, the Department of Government Information (DGI)  said on Tuesday.

The subsidy will apply to auto diesel and industrial diesel.

The government will allocate a total of 40.65 billion rupees (about 123 million dollars) for the subsidy from October to December, including 13.5 billion rupees (about 40.8 million dollars) in November and 12.15 billion rupees (36.7 million dollars) in December.

The DGI said the measure is intended to prevent domestic diesel prices from rising in line with international market prices and to keep fuel costs at affordable levels for consumers.

The three-month subsidy is expected to reduce the impact of higher global fuel prices on the public while maintaining domestic diesel prices at manageable levels.