Cost of Living

Minister Wasantha Samarasinghe provided assurances regarding gas supply security, stating that Sri Lanka's suppliers source gas from the Southern African region and have provided written guarantees of uninterrupted supply for the year. He cautioned against spreading fear or inciting public panic over gas or fuel shortages, acknowledging global supply pressures while asserting that the government has the situation under control.

## Summary President Dissanayake addressed Parliament on the economic and social implications of the ongoing Middle East conflict for Sri Lanka, emphasising that while no country is immune to global instability, the government has adequate short-term mitigation plans in place. He provided detailed current fuel stockpile figures, citing approximately 33 days of diesel cover, 40 days of petrol cover, and 49 days of Jet A-1 cover, with multiple confirmed inbound supply vessels scheduled through the end of March. To address the country's primary vulnerability — insufficient storage capacity — he outlined a series of infrastructure investments totalling several billion rupees, including expansion of the Kolonnawa and Muthurajawela tank farms, rehabilitation of Trincomalee storage tanks, a new Jet A-1 pipeline to Katunayake, and an Expression of Interest process to double the capacity of the Sapugaskanda refinery from 50,000 to 100,000 barrels per day. He acknowledged public anxiety rooted in recent memories of the 2022 fuel crisis and stated that practical assurances, not words alone, are required to prevent societal instability, while calling for a broader international commitment to peaceful resolution of the conflict.

Deputy Minister Aravinda Senarath responded to a supplementary question regarding paddy purchases, acknowledging that heavy rainfall in the Eastern Province had caused difficulties for farmers. He stated that the Government had taken remedial action by opening Paddy Marketing Board (PMB) stores across eight harvesting districts, including Ampara, and had commenced purchasing operations. He indicated that initial logistical issues arising from the situation were in the process of being resolved.

Hon. Hector Appuhamy challenged the Minister over two energy-related issues: the management of the Trincomalee tank farm and environmental harm caused to residents near the Norochcholai power plant. He referenced a pre-election statement by the current President claiming his government would better manage fuel resources through the Trincomalee facility, implying the Government has failed to deliver on this promise. He also called on the Minister to detail specific measures to address environmental damage caused by the burning of substandard coal at Norochcholai and to report back to Parliament.

## Summary Hon. Marikkar argued that the use of substandard coal will reduce power generation capacity, forcing the Ceylon Electricity Board to purchase electricity from diesel suppliers at approximately Rs. 64 per unit instead of generating it at Rs. 24 per unit — a difference he characterised as theft being passed on to consumers. He strongly opposed the proposed 13.5% electricity tariff increase, directing the Public Utilities Commission of Sri Lanka (PUCSL) not to approve the hike on the grounds that the public should not bear the cost of alleged corrupt practices. Marikkar referenced pre-election government promises to reduce electricity bills and warned that a further increase would prompt public protests. He appealed directly to government Members of Parliament to reject the tariff proposal, cautioning that failure to act could politically damage the ruling party and cause hardship to the broader population.

The speaker welcomes the Poisons, Opium and Dangerous Drugs (Amendment) Bill while noting it took the government a year to introduce under the "Clean Sri Lanka" initiative. The majority of the speech addresses an ongoing national gas supply crisis, which the speaker attributes not to foreign exchange shortages as during COVID, but to the government's selection of a supplier lacking the logistical capacity—ships, storage facilities, and consistent supply chains—to meet national demand of 10,000–12,000 MT per cargo, requiring four to five deliveries monthly. The speaker argues that prioritising marginal price differences over supplier capability has caused the shortages, and proposes that Litro Gas Lanka Ltd. be returned to full state control and properly managed. The speaker urges the government to resolve the crisis promptly before panic buying compounds the situation.

Minister Wasantha Samarasinghe attributed a recent gas shortage to LAUGFS's failure to supply the market, while Litro continued its distribution, causing LAUGFS customers to create excess demand on Litro's supply. In response, the government is releasing 1,500 MT of gas per day for three consecutive days — described as an unprecedented level — to address the supply gap. The Minister also warned that regulatory action would be taken against the company if it fails to comply with government directives.

Leader of the Opposition Hon. Sajith Premadasa defended his right to raise concerns about a consumer shortage, clarifying that he sourced information through social media and other channels, which he asserted is not unlawful. He acknowledged government claims regarding ship schedules but maintained that a real scarcity exists, evidenced by public queues, and urged the relevant Minister to address the situation in the interest of consumers rather than responding with agitation.

Minister Wasantha Samarasinghe addressed concerns about a gas shortage, asserting that no actual shortage exists and attributing consumer difficulties primarily to LAUGFS cylinder users. He stated that LAUGFS had been directed to cease misleading consumers and resume distribution immediately, and accused certain parties of fabricating a shortage narrative to create public panic. The Minister offered to provide nationwide distribution data and announced that daily distribution records of gas companies would be published, pledging that the government would not permit a shortage to develop.

The Minister of Trade, Commerce, Food Security and Co-operative Development responded to concerns raised by the Leader of the Opposition regarding gas shortages and queues, attributing the crisis primarily to LAUGFS Gas pausing its distribution for two to three weeks, which caused its customers to seek Litro cylinders and created excess demand. The Minister outlined that Litro, which holds approximately 80–82% market share, would increase daily distribution from its normal 1,000–1,200 metric tons to approximately 1,500 metric tons over the following three days to alleviate queues. He further noted that two supply ships are scheduled to arrive on Sunday and Tuesday, and that the Consumer Affairs Authority has directed LAUGFS to resume distribution and serve its customers. The Minister sought to reassure Parliament that supply was being stabilised through increased Litro output and imminent shipments.