President Anura Kumara Dissanayake said the government has sent its contracts with private fuel distributors to the Attorney General’s Department for legal review, to amend their terms.
Speaking at the Sri Lanka Economic and Investment Summit 2026, he said private distributors had restricted sales instead of matching state retail prices. They had sought increases of up to Rs. 132 per litre for diesel, he said. The Ceylon Petroleum Corporation’s (CPC) share of diesel distribution has risen to 77 percent from 58 percent.
For motorists and businesses, the price gap between private and CPC outlets affects where fuel is available and at what cost. The President said the government allocated Rs. 60 billion in the first five months of the year for a Rs. 100 per litre relief on diesel and Rs. 20 per litre on petrol. After a brief suspension in September, a fresh Rs. 41 billion package for October to December keeps a Rs. 70 per litre subsidy on diesel.
He said existing agreements limit immediate legal remedies against firms restricting sales, and that CPC has made a net profit of Rs. 28 billion so far this year.
The government will open 75 new CPC fuel stations in areas that depend on private distributors, the President said.
