Kathmandu. Sri Lanka on Tuesday slashed fuel prices by up to six per cent following the Middle East ceasefire. The price of diesel has been reduced by Rs 25 per litre to Rs 382 per litre and petrol by Rs 20 per litre to Rs 414.

Sri Lanka has cut energy prices following a sharp drop in international energy prices after the United States and Iran agreed to hold talks to end the conflict.

Sri Lanka had hiked petrol and diesel prices by nearly 50 per cent after the US and Israel invaded Iran on February 28.

Officials said electricity tariffs in Sri Lanka had also been increased by a third to balance high imports and costs during the conflict.

Sri Lanka buys all the oil it needs and relies on imported coal to generate electricity, warning that a prolonged conflict in the Middle East could affect the weak economic situation.