The latest First Capital Report (FCR) says Sri Lanka’s fuel import bill has risen significantly.

Petroleum products, including both crude and refined fuels, account for approximately 21% to 24% of Sri Lanka’s total merchandise imports, making them a major component of the national import bill.

Sri Lanka’s fuel import bill more than doubled to USD 886 million in April 2026 compared to the corresponding period last year, with the country already accounting for approximately 53% of its total oil import expenditure for the entirety of last year within the first four months of 2026.

According to FCR estimates, an increase in crude oil prices could raise the country’s import bill by approximately USD 598 million to USD 1,776 million.

“However, looking ahead, we expect the fuel bill to normalize as the government looks to align fuel prices with market levels in line with commitments made to the IMF, thereby reducing pressure from global oil imports and supporting external stability,” the report said.

The report further noted that better pricing discipline in the energy sector could help ease import bill volatility and improve overall macroeconomic stability. (SS)