Sri Lanka cuts fuel prices to mark friendship with China

Sri Lanka on Tuesday slashed fuel and electricity prices in "appreciation" of the China-Sri Lanka friendship, hours after Chinese President Xi Jinping arrived here on a maiden visit to the country.

The decision was announced following president Mahinda Rajapaksa's bilateral talks with Xi. "In appreciation of China-Sri Lanka friendship, the President announces reduction of fuel and electricity tariff effective tonight," President said in a Twitter message.

Rajapaksa said the per litre price of petrol would be reduced by 5 rupees while diesel would be reduced by rupees 3.

The biggest cut came in electricity tariff which would be reduced by 25 per cent, the President said.

The President said that as a result of the commissioning of the Norochcholai coal power plant, electricity fares can be reduced by 25 per cent.

The Norochcholai coal power plant, built with Chinese funding, would see adding of 600 mega watts of power to the national grid.

Slashing petroleum products prices and cutting electricity tariffs are widely seen by analysts as popular moves by the President, who is widely believed to be calling a snap election after November this year, to try and win his third successive term.