Sri Lankans seek cost-of-living relief in budget amid oil shock and rupee slide
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Sri Lankans are demanding cost-of-living relief ahead of the National People’s Power government’s third national budget, as headline inflation reached 8.3 percent in October 2026.
Rising costs followed US–Iran war oil shocks and currency depreciation. Brent crude reached 91.34 dollars a barrel, domestic fuel prices surged over 43 percent between February and November, and the rupee weakened to 332.36 against the US dollar.
Workers and small traders called for lower prices on food, electricity, and school materials, stating that customers cannot absorb increased charges.
Prices rose despite a 22.3-billion-rupee budget surplus in the first nine months of 2026. Some analysts attributed the rupee's decline to Central Bank liquidity injections used to purchase foreign exchange reserves.
