Sri Lanka 4-Day Week: Oil & Gas Crisis | Iran War Impact

Sri Lanka is implementing a four-day working week for state institutions, schools, and universities to conserve dwindling fuel and gas reserves amid disruptions to energy supplies caused by conflict in the Middle East.

Fuel and Gas Shortages Across South Asia

Countries throughout south Asia are experiencing critical shortages of fuel and Liquefied Petroleum Gas (LPG), essential for daily life, as supplies have been largely stalled in the Gulf region following US and Israeli military actions in Iran.

The strait of Hormuz, a vital shipping route for oil and gas to south Asia, has been effectively closed for two weeks due to a blockade by Iran in response to the strikes.

Most nations in the region rely almost entirely on imported fuel and gas, with many warning they have only weeks of supply remaining. Bangladesh has announced early Ramadan holidays for universities and is implementing scheduled power blackouts to reduce energy consumption.

Pakistan, which depends on 85% of its energy passing through the strait of Hormuz, has shifted schools to online learning and increased fuel prices to curb hoarding.

Sri Lanka Implements Four-Day Work Week

Sri Lanka is among the countries reducing working hours to conserve fuel, primarily sourced from the Middle East. Starting Wednesday, state institutions, schools, and universities will operate only four days a week, with civil servants encouraged to work from home when possible.

“We are also asking the private sector to follow suit and declare every Wednesday a holiday from now on,” Prabath Chandrakeerthi, commissioner general of essential services, said following an emergency meeting led by President Anura Kumara Dissanayake.

Fuel rationing began on Sunday, mirroring the situation during Sri Lanka’s 2022 economic crisis. Motorists are limited to 15 litres of petrol or diesel weekly, with public transport allocated up to 200 litres. Officials estimate current reserves will last nearly six weeks, but warn of severe impacts from any further supply disruptions.

Essential services, including hospitals, ports, and emergency services, will continue to operate normally. The government stated that a prolonged conflict in the Middle East and continued disruption to shipping through the strait of Hormuz could jeopardize its economic recovery.

During Monday’s emergency meeting, Dissanayake urged officials to “prepare for the worst, but hope for the best.”

Impact on India

In India, where 60% of LPG gas supplies originate in Gulf states, long lines have formed for cooking gas canisters, and many restaurants have closed or removed slow-cooking dishes from their menus. Hotels have warned of potential closures, and a major steel plant announced it would halt operations. Prime Minister Narendra Modi has sought to reassure the public that there is no LPG shortage and urged calm.

India reported some diplomatic progress over the weekend, with two of its tankers carrying critical gas supplies successfully navigating the strait on Saturday and arriving in India on Monday. Foreign Minister Subrahmanyam Jaishankar stated that the tankers were allowed passage after direct negotiations with Iranian officials, saying, “I am at the moment engaged in talking to them and my talking has yielded some results.”