<p>Sri Lanka's largest private fuel retailer hiked diesel prices more than 40 per cent on Friday, compounding the hardship for ordinary people in the country's worst economic crisis since independence.</p>.<p>The island nation's 22 million people have already been reeling from weeks of shortages that have crippled public transport and caused long queues for petrol, food and medicine.</p>.<p>The cause has been a wide-ranging import ban as the government tries to stop the outflow of dollars in order to pay off debt after the pandemic torpedoed the vital tourism sector.</p>.<p><strong>Also Read | <a href="https://www.deccanherald.com/international/world-news-politics/sri-lanka-sharply-depreciates-currency-as-crisis-bites-1089086.html">Sri Lanka sharply depreciates currency as crisis bites</a></strong></p>.<p>In its third hike in two months, Lanka IOC raised diesel to 252 rupees ($1.00) a litre from 177 rupees while high octane gasoline was up 50 rupees to 283 rupees ($1.08).</p>.<p>Official figures show that diesel prices have risen 78.2 per cent while gasoline is up 43.5 per cent since February 6.</p>.<p>There was no immediate energy price revision by the state-run Ceylon Petroleum Corporation (CPC), but most of its pumps have been out of fuel. The few that were open saw long queues on Friday.</p>.<p>Overall inflation hit a record 16.8 per cent in January with food prices up 25 per cent.</p>.<p>Supermarkets are rationing staple foods including rice, sugar and milk powder.</p>.<p>In a bid to woo more foreign-exchange remittances from Sri Lankans abroad, the central bank on Monday announced "greater flexibility" in the exchange rate after depreciating the currency by 15 per cent.</p>.<p>Since Monday, the rupee has lost about a quarter of its value against the dollar.</p>.<p>Official sources said Friday's fuel price increase reflected the weaker rupee.</p>.<p>Sri Lanka's foreign currency reserves had fallen to $2.0 billion by the end of February while it has to repay $7.0 billion this year to service its external debt of $51 billion.</p>.<p>International rating agencies have downgraded the country on fears that it may not be able to repay its debts, but Colombo insists it will somehow honour its obligations.</p>.<p><strong>Check out the latest videos from <i data-stringify-type="italic">DH</i>:</strong></p>
<p>Sri Lanka's largest private fuel retailer hiked diesel prices more than 40 per cent on Friday, compounding the hardship for ordinary people in the country's worst economic crisis since independence.</p>.<p>The island nation's 22 million people have already been reeling from weeks of shortages that have crippled public transport and caused long queues for petrol, food and medicine.</p>.<p>The cause has been a wide-ranging import ban as the government tries to stop the outflow of dollars in order to pay off debt after the pandemic torpedoed the vital tourism sector.</p>.<p><strong>Also Read | <a href="https://www.deccanherald.com/international/world-news-politics/sri-lanka-sharply-depreciates-currency-as-crisis-bites-1089086.html">Sri Lanka sharply depreciates currency as crisis bites</a></strong></p>.<p>In its third hike in two months, Lanka IOC raised diesel to 252 rupees ($1.00) a litre from 177 rupees while high octane gasoline was up 50 rupees to 283 rupees ($1.08).</p>.<p>Official figures show that diesel prices have risen 78.2 per cent while gasoline is up 43.5 per cent since February 6.</p>.<p>There was no immediate energy price revision by the state-run Ceylon Petroleum Corporation (CPC), but most of its pumps have been out of fuel. The few that were open saw long queues on Friday.</p>.<p>Overall inflation hit a record 16.8 per cent in January with food prices up 25 per cent.</p>.<p>Supermarkets are rationing staple foods including rice, sugar and milk powder.</p>.<p>In a bid to woo more foreign-exchange remittances from Sri Lankans abroad, the central bank on Monday announced "greater flexibility" in the exchange rate after depreciating the currency by 15 per cent.</p>.<p>Since Monday, the rupee has lost about a quarter of its value against the dollar.</p>.<p>Official sources said Friday's fuel price increase reflected the weaker rupee.</p>.<p>Sri Lanka's foreign currency reserves had fallen to $2.0 billion by the end of February while it has to repay $7.0 billion this year to service its external debt of $51 billion.</p>.<p>International rating agencies have downgraded the country on fears that it may not be able to repay its debts, but Colombo insists it will somehow honour its obligations.</p>.<p><strong>Check out the latest videos from <i data-stringify-type="italic">DH</i>:</strong></p>