The Iran oil crisis has led Sri Lanka to test out a new short-term solution to its never-ending list of fuel shortages - a midweek public holiday. But are solutions such as these effective in managing crises, or do they merely prolong long-term issues?

Sri Lanka has a long history of disaster, with 26-years of civil war, the 2019-24 economic crisis, and natural disasters such as the 2004 Indian Ocean tsunami, and Cyclone Ditwah in 2025. For observers, it may seem like the nation rebuilds after such disasters, only for another event to stall all progress.

In the current climate of the Iran war and the ensuing oil crisis, Sri Lanka’s response feels eerily similar to its handling of the 2019-24 economic crisis, with continued financial instability and the government’s dependence on last-resort, short-term solutions.

The fuel crisis impacts will likely be felt for months to come, as economic pressures test governments like Sri Lanka’s on their level of preparedness on managing the ongoing oil crisis.

The Sri Lankan government’s response to the oil crisis has undoubtedly been unconventional, with it introducing a range of measures to reduce fuel consumption, including making every Wednesday a public holiday, and introducing a system of fuel rationing based on vehicle  license plate registration numbers.

These policies have been implemented to avoid a repeat of the chaos of petrol queues in the 2019-24 economic crisis, yet the burden of this crisis is felt by local restaurant and shop owners who are seeing a sharp decline in business.

Undoubtedly, the four-day work week is affecting school programmes and disrupting education as well. The handling of this fuel crisis reveals a greater truth about Sri Lanka’s preparedness for crises, and exposes key structural weaknesses that make the nation more susceptible to disaster.

Tourism is the backbone to Sri Lanka’s economy, being one of its biggest contributors to foreign revenue. However, it is also one of the sectors of Sri Lanka’s economy that is most susceptible to fluctuations in times of economic turbulence.

While Sri Lanka has allocated fuel for hotels and tour operators in the midst of the Iran war, the number of tourists coming to Sri Lanka has plummeted. Following the 2019-24 economic crisis, tourism was a key component in Sri Lanka’s economic recovery plan.

In response to crises, Sri Lanka often appears to employ short-term and occasionally extreme solutions due to a lack of preparedness, though one might assume when looking at their history that more preparation should have been expected.

In 2025, the Sri Lankan government declared a national emergency in response to Cyclone Ditwah,  which caused catastrophic damage, and exacerbated demand for foreign aid. In this circumstance, it was not the disaster itself that was unpredictable, as Sri Lanka is prone to natural disasters, but rather, its failure to prepare for such scenarios.

Sri Lanka has been tested time and time again as to the pressure it can handle, and each crisis has only underscored the need to address systemic issues, which continue to impede the nation’s disaster preparedness.

Farrago spoke to Dr Paikasothy Saravanamuttu, the Executive Director of the Centre for Policy Alternatives in Sri Lanka, who believes that one of the nation's greatest vulnerabilities is its lack of crisis preparedness.

“It's a lack of preparation and planning, and it is also therefore the lack of having the right people in the right place, the right structures, the right institutions,” he said.

“The government is trying a variety of measures in order to cope with the situation. Yes, making Wednesday a holiday has worked somewhat, but now that's being removed. People [will] have to work on Wednesdays.”

In regard to the government's approach to the crisis, Dr. Saravanamuttu emphasised the government “not being able to foresee and make contingency plans, and when contingency plans have been made it’s about implementing them… long term.”

Ultimately, what Sri Lanka and other similarly susceptible countries need after years, if not decades of crisis, is stability. All Sri Lanka has ever known has been a repetitive and seemingly endless cycle of economic and political issues, putting it in a uniquely vulnerable position in the current oil supply disruption.

Rather than preparing for these crises, which do not necessarily ‘come out of nowhere’, as the government may claim, Sri Lanka has often resorted to implementing short term solutions to problems that often become detrimental in the long term. In today's global climate, it is vital that nations like Sri Lanka respond effectively and prepare for the worst without becoming reliant on temporary fixes.

Image Source: Reuters: Thilina Kaluthotage