In brief
Sri Lanka’s fuel import expenditure climbed to $4.49 billion in the first nine months of 2026, up 51.5% from $2.96 billion a year earlier, according to the Central Bank’s External Sector Performance report. The surge reflects higher domestic fuel prices linked to the Middle East conflict and supply‑chain disruptions, including restrictions on shipments through the Strait of Hormuz. Though September’s spending dipped for the fifth straight month, it remained well above last year’s level.
On November 1, the Central Bank of Sri Lanka released its External Sector Performance report, showing that the country spent $4.49 billion on fuel imports from January to September 2026, a 51.5 percent increase over the $2.96 billion spent during the same period in 2025.
Fuel import spending fell slightly in September, recording $415.1 million versus $440.7 million in September 2025, marking the fifth consecutive month of a monthly decline. Despite this decline, the overall nine‑month bill remained markedly above last year’s figure, according to the bank.
Drivers of the Increase
The Central Bank attributed the rise to higher domestic fuel prices that followed an escalation of conflict in the Middle East. Disruptions to global energy supply chains, including restrictions on petroleum shipments through the Strait of Hormuz, also pushed up crude oil and petroleum product prices, freight charges, and insurance costs.
These factors combined to inflate the cost of fuel imports, forcing Sri Lanka to spend more to maintain domestic supply levels. The report did not detail the specific commodities or volumes involved, focusing instead on the aggregate expenditure and its drivers.
While the Central Bank highlighted supply‑chain constraints as a key contributor, it did not elaborate on the potential for alternative routing or hedging strategies that might mitigate future price swings.
As the data covers only the first nine months of 2026, there is no information on the remaining three months of the year or on how the country’s overall energy mix might adjust to the higher import bill.
Unresolved questions remain about the duration of the Middle East conflict’s impact on global shipping lanes, the permanence of supply‑chain restrictions, and any policy responses Sri Lanka may launch to reduce import dependency in the long term. These uncertainties were noted by the Central Bank, which emphasized that the domestic fuel market’s trajectory will continue to be shaped by external events beyond the country’s control.
