Sri Lanka announced a record US$320 million relief package for farmers, fishermen and low-income households struggling with soaring energy costs linked to the Middle East war.
President Anura Kumara Dissanayake said cash grants will be paid directly to thousands of fishermen and rice and tea farmers. Citizens below the poverty line will receive additional payments for traditional New Year celebrations.
The relief totals 100 billion rupees over three months. The government plans to absorb 30 percent of fertilizer costs for farmers and cover part of electricity generation expenses up to $48 million.
Fishermen using smaller boats will receive monthly fuel subsidies of up to $300, while larger boat operators get $483 monthly for three months.
Sri Lanka remains on a $2.9 billion IMF bailout program launched in 2023. The government aims to secure the next $700 million tranche by month-end following recent staff-level agreements.
The country is negotiating with Russia to resume imports of gas, coal, fuel and fertilizer after temporary U.S. sanctions relief. Fuel prices have risen one-third since February, with electricity tariffs jumping 40 percent.
A four-day work week implemented last month will end this week after failing to deliver expected energy savings.