The paradise island of Sri Lanka depends on tourism but is currently in an economic crisis. The road to recovery is long. The tourist industry has been somewhat affected. However, you will still have a great time traveling to Sri Lanka for your holiday!
As a tuk-tuk rental business, tourists and fuel are essential to our operations. We monitor the situation closely. We continue to share updated information here.
Understanding the Fuel Situation
The economic crisis means Sri Lanka has less money to buy fuel. This has resulted in shortages, closed fuel stations, and long queues. You’ve probably seen the news images from the beginning of the year showing these issues.
Since then, the situation has improved a lot. In August, the government introduced a QR Code Fuel Pass system. This system limits fuel distribution based on a weekly quota.
Why Were There Long Queues?
You have likely seen news about long queues at petrol stations in Sri Lanka. Early in the crisis, this news hit Sri Lanka before it went international. As a result, a massive run to fuel stations occurred. People wanted to fill up before fuel ran out. But what happens when everyone wants to fill up at once? Exactly. The queues get long, and the fuel runs out even faster. This caused a temporary shortage until stations could refill.
Even outside this crisis, fuel stations are generally busy. This is especially true in the more densely populated western and southern parts of the island.
Getting Petrol as a Tourist
Petrol is most important for tourists renting a tuk-tuk. Initially, our customers did not have much trouble finding it. In April, Kandy experienced a petrol shortage for a couple of weeks, but that issue is now largely solved.
Sometimes power cuts cause problems. The electrical pumps at fuel stations don’t work without electricity, so the station closes temporarily. This happened often in the beginning during a diesel shortage, but it is less common now.
The situation has improved significantly since the start of the crisis. Petrol availability is improving daily! We have seen a steady supply of fuel shipments arriving in the country. Distribution mostly supplies densely populated areas like Colombo, Kandy, and Galle. These areas have the most petrol vehicles. Meanwhile, outer suburbs currently receive petrol more slowly. This means you have a better chance of pumping fuel in the outskirts where you will likely travel.
Tips for Fueling Up
On special days (mostly Fridays), CEYPETCO distributes fuel to essential services. This includes doctors, police, and religious leaders. The Ministry of Tourism has also declared tourism an essential service. Therefore, tourists can often fuel up their tanks on these days. When you see a fuel station serving essential services, check with the police or army present if you can get fuel.
Lanka IOC has been a stable petrol provider. They fill up their fuel stations every 2 or 3 days.
The Tourist Fuel Pass Card
The Tourist Fuel Pass Card is a unique foreign currency top-up card. The government introduced it during the economic crisis. Tourists can use it to get unlimited fuel. It also gives you priority access at fuel stations when self-driving a tuk-tuk.
The Ministry of Power and Energy, the Ministry of Tourism, Dialog, and Sampath Bank launched this card. It helps tourists get fuel quickly while driving around the island.
Please check out our blog post HERE for more information about this special card.
Other Ways to Get Fuel
Our Fuel Stocks
Over the months, we have stocked up on some fuel at friends’ places around the island. We work with many mechanics and tourism professionals who have helped us secure petrol. However, this is subject to availability.
We are also working with Board of Investment (BOI) companies. These factories have been able to secure bulk petrol. They need USD for their own imports, which we have. This makes it easy to trade in some instances.
The Friendly Sri Lankan People
Sri Lanka is a country that depends on tourism, so many people are willing to help! Our customers have found that people in queues insist they go first. Police have let them pass queues. Fuel station managers have asked them to come forward. The list goes on!
Hotel owners have also been amazing. Many have extra fuel stored or will send someone to get fuel for you. The hospitality of the people towards tourists during this crisis has been incredible. Once you book a hotel, you can message or call ahead and ask them to secure some fuel for you.
Everyone understands that tourists bring foreign currency to the country. So, they want to ensure tourists face no hindrance from the current economic situation.
The Foreign Currency Crisis and Its Effects
Why is all this happening? Sri Lanka has been having problems with its foreign currency reserves for quite some time. The 2019 Easter attacks and the COVID pandemic meant less foreign currency came into the country. Sri Lanka needs this currency to buy essential and luxury products from overseas.
For example, the government placed an import ban on vehicles in 2020. This includes tuk-tuks! As a result, a thriving second-hand market has emerged. A tuk-tuk that cost 1 million LKR in 2020 now costs a whopping 1.6 million rupees.
Spare parts also don’t get into the country easily. This has increased prices for fixing tuk-tuks. Oil is the same story and has become quite expensive. We, however, continue to offer our product at the same rates to tourists. Instead, we have chosen to raise the rates we pay our tuk-tuk owners.
At the moment, tourists are one of the largest sources of foreign currency for the island. But with the war in Eastern Europe, tourists from Russia and Ukraine have declined rapidly. These tourists have always been large contributors to the economy. Besides that, many exports like tea which go to these countries have also decreased.