The government of Sri Lanka has announced that every Wednesday will be observed as a public holiday for state institutions in an effort to reduce fuel consumption, as the country grapples with a worsening fuel shortage.
The move comes as global oil supply disruptions intensify following the ongoing conflict involving Israel, the United States, and Iran.
President Anura Kumara Dissanayake said the country must prepare for the potential consequences of the conflict while remaining hopeful for a resolution. His remarks followed an emergency meeting with senior government officials.
“We must prepare for the worst while continuing to hope for the best,” he said.
The new measure will apply not only to government offices but also to parts of the education sector, excluding essential services. Authorities say the decision is aimed at cutting fuel usage and easing pressure on limited supplies.
The situation reflects broader economic measures being adopted across parts of Asia as the conflict in the Middle East disrupts global oil transportation. The situation worsened after Iran announced the closure of the Strait of Hormuz on February 28, 2026, a key maritime route through which nearly 20 percent of the world’s oil supply passes.
Asia, which accounts for the largest share of global oil imports, has been particularly affected. Last year, nearly 90 percent of oil transported through the Strait of Hormuz was destined for Asian markets.
Since the closure, global oil prices have surged sharply, with a barrel rising to around $120, up from approximately $60–$70 before the escalation of the conflict.
Iran has warned that prices could climb as high as $200 per barrel if military strikes by the United States and Israel continue, indicating it may maintain restrictions on the vital shipping route.
The developments highlight how the widening Middle East conflict is increasingly impacting economies far beyond the region, with countries like Sri Lanka now taking urgent steps to manage energy shortages and economic pressure.
