“It’s all because of Trump…”
“The country was being run so well…”
“What can the government really do?”
“During Gotabaya’s time, fuel ran out because of external forces. Now fuel is running out because of the war…”
“There’s no point blaming Anura. It’s Trump who should be held responsible for this crisis…”
These are the popular slogans currently circulating in the JVP’s social media campaign.
However, no one speaks about how the global oil crisis and economic turmoil that followed Iraq’s invasion of Kuwait in August 1990 were managed by then-President Premadasa.
Premadasa became President in December 1988.
“I was not handed a country, but a torch burning at both ends…”
He did not say this lightly. At the time, the JVP had imposed a de facto lockdown across the country through armed violence, using T-56 rifles, burning fuel bowsers and buses, and bringing the nation to a standstill. Simultaneously, the Indian Peace Keeping Force was creating chaos in the North and East. In between, the LTTE was preparing for war, assassinating Tamil politicians in Colombo. Meanwhile, North-Eastern Chief Minister Varadaraja Perumal had declared an independent Eelam state and fled to India in a helicopter.
Premadasa untangled this complex crisis step by step. First, he expelled the Indian forces—something many believed impossible. Second, he crushed the JVP insurgency by November 1989, during which Wijeweera and the JVP leadership were killed. Only by early 1990 did he finally get a moment to breathe.
But that relief was short-lived. In August 1990, Iraq invaded Kuwait, triggering a global oil crisis. At the time, nearly 100,000 Sri Lankan workers were employed in Kuwait and Iraq. With the outbreak of war, oil prices soared and supply chains were disrupted.
Premadasa was once again pushed into crisis. Just as he was planning to rebuild an economy devastated by insurgency, the Middle East war erupted.
His first priority was to rescue Sri Lankan workers stranded in Kuwait, who were living in fear. He immediately instructed the Sri Lankan Embassy in Saudi Arabia to establish safe centers to care for Sri Lankans until they could be repatriated. He also ordered the immediate evacuation of embassy staff families back to Sri Lanka. Following that, he contacted the Saudi leadership to secure aircraft needed to bring Sri Lankan workers home.
By this time, Premadasa had already closed the Israeli Embassy in Sri Lanka and expelled Israeli officials, gaining goodwill among Arab nations. This decision came after revelations—based on a book written by a Mossad officer—that Israel had supplied arms and military training to both the Sri Lankan military and the LTTE. After appointing a commission to investigate, Premadasa acted on its recommendations and shut down the Israeli mission.
This move made him a popular leader among Arab countries. He built strong relationships with Arab leaders and secured a quota system to obtain oil at lower prices. When the war broke out, he personally contacted Arab leaders to ensure that this oil supply quota would continue uninterrupted, preventing shortages and price spikes in Sri Lanka.
In addition, he addressed the economic hardships faced by returning Sri Lankan workers. Through negotiations with Kuwait and via the United Nations, he helped establish a compensation fund—known as the Kuwait Fund—for foreign workers affected by the war. This brought significant foreign exchange into Sri Lanka and helped offset the loss of remittances.
Even today, people who remember the Iraq-Kuwait war say:
“We never saw fuel queues in Sri Lanka during that time…”
“Fuel prices did not skyrocket locally…”
During this period, Premadasa also launched the garment industry to earn foreign exchange and initiated hotel projects like Kandalama to boost tourism. At the same time, he introduced welfare programs such as the Udgam housing scheme, Janasaviya for the poor, and foster-parent initiatives.
Not only Premadasa, but even Ranil Wickremesinghe’s UNP government had to face a Middle East war. This was in March 2003, when the United States decided to invade Iraq, alongside allies such as the United Kingdom, Australia, Denmark, Poland, and the Netherlands. That war shook not only the Middle East but the entire world.
At that time, Ranil’s government was engaged in peace talks with the LTTE and was receiving strong support and a large aid package from Western countries, including the United States. As a result, the government was cautious about antagonizing the US. Meanwhile, opposition parties like the SLFP and JVP organized protests across the country accusing the government of supporting the invasion. Muslim communities also joined these protests, and the JVP even launched a boycott of American goods.
Despite widespread anti-American sentiment, the government managed to supply fuel without shortages. Even as global oil prices surged rapidly, they were controlled locally through subsidies. Fuel queues were not seen during that time either.
“Why is it that a fuel rationing system—never seen during two Middle East wars—is being experienced now?”
That is the question the government must answer.
