254rs for a liter of petrol? a small country struggling with fuel prices

It is a known fact that Sri Lanka is struggling hard with inflation, unemployment and other issues after the pandemic. However, after all these, the island country is now struggling with a massive hike in fuel prices. Sri Lanka's largest fuel retailer has increased diesel prices by 40% this Friday. It is the worst situation the country has ever faced in all these years.

It is said to be the third successive hike in fuel prices in the last two months. Official figures show that diesel prices have risen 78.2 per cent while gasoline has been up 43.5 per cent since February 6. Sri Lanka's foreign currency reserves had fallen to $2.0 billion by the end of February. It has to repay $7.0 billion this year to service its external debt of $51 billion. Economic experts added that the country would face a severe crisis shortly if the same continues.