Finance and Planning Minister Amir Khasru Mahmud Chowdhury on Sunday said the recent increase in domestic fuel prices was driven by global market volatility and not linked to any conditions imposed by the International Monetary Fund (IMF).
Speaking to reporters at the Ministry of Finance, the minister said the government had postponed price adjustments for as long as possible in an effort to shield citizens from inflationary pressure, even as rising import costs strained public finances.
He noted that international oil prices have surged significantly, pointing out that costs have reportedly doubled in the United States and risen by around 25 per cent in Sri Lanka, reflecting a broader global energy shock.
The minister categorically dismissed claims that IMF directives influenced the decision, stating that the adjustment was made independently to manage fiscal pressure and support the upcoming national budget.
He said the price increase was relatively minimal compared to global trends and was necessary to ensure continuity of key economic programmes and maintain stability in public expenditure.
Amir Khasru also said discussions with international financial institutions, including the IMF, World Bank and Asian Development Bank (ADB), are ongoing as part of regular engagement.
He stressed that the government, as an elected administration, would not accept any conditions that burden ordinary citizens or businesses.
“We will not take any decision that undermines public interest,” he said, adding that the current IMF programme is a continuation of an earlier arrangement and is nearing completion within the next six to seven months.
On inflation, the minister said fuel prices are only one contributing factor among many, and overall price levels depend largely on supply and demand conditions.
He added that the government is working to maintain sufficient fuel reserves and stable supply chains to reduce pressure on consumers while continuing development and welfare initiatives.
