Colombo, April 7 Sri Lankan President Anura Kumara Dissanayake announced an economic relief package on Tuesday aimed at minimizing the impact of the West Asia conflict.
Speaking in parliament, Dissanayake said that India has agreed to provide the island nation with petrol and diesel.
"As a government, we have to respond to the difficulties faced by the people," Dissanayake said.
"We have focused on four areas: fuel, energy, gas, and fertilizer," said the president, who is also the finance minister.
"We will grant a concession of 100 Sri Lankan Rupees per litre for diesel and 20 Sri Lankan Rupees per litre for petrol," Dissanayake said, adding that this will cost the government 20 billion Sri Lankan Rupees per month.
He said the government had launched a flurry of diplomatic activity to ensure Sri Lanka's energy sustainability.
"I spoke to Prime Minister Modi. He has agreed to provide us with petrol and diesel," Dissanayake said, adding that talks have commenced with Russia to obtain gas, coal, fuel, and fertilizer.
Sri Lanka's foreign exchange reserves have reached nearly USD 7 billion, the president said. "The Central Bank was able to buy USD 700 million dollars from the market, so it is a good situation," he added.
Since the US-Israeli military action against Iran began on February 28, Sri Lanka raised retail fuel prices three times in March. The last revision saw prices rising by over 25 per cent.
The government also introduced a four-day work week to conserve energy, with guidelines issued to cut down on usage.
However, it was announced that the five-day work week would return from Wednesday with the cancellation of the mid-week holiday.
On March 28, India sent a shipment of 38,000 MT of fuel, comprising 20,000 MT of diesel and 18,000 MT of petrol, to Colombo as an emergency support through the local operation of Indian Oil Corporation (IOC), Lanka IOC (LIOC).
The fuel shipment was a result of a telephone conversation held on March 24 between Dissanayake and Prime Minister Modi.
