Sri Lanka’s economy is shutting down as fuel supplies run out

COLOMBO: COLOMBO: Sri Lanka’s economic activity is almost halted as the island nation, facing its worst financial crisis, runs out of fuel and has little sign of new supplies.
The government has declared Friday a holiday for public services and schools to restrict vehicle traffic, leaving many roads in and around the deserted capital of Colombo. Meanwhile, thousands of vehicles lined up for miles as drivers waited to refuel.
Energy and Energy Minister Kanchana Visesekera said on Thursday that the state-owned Ceylon Petroleum Corp had not won tenders for fresh fuel stocks because suppliers were deterred from making unpaid payments.
The South Asian nation has approached several companies and countries, including Russia, for supplies and hoped for approval from India for a new $ 500 million credit line for fuel imports, Wijesekera said.
Sri Lanka’s economic collapse, the worst in its independent history, has sparked protests across the island in recent months seeking the ouster of the president. Ready Rajapaksa and members of his family from the government. The clan is accused of making decisions that have led to serious shortages of everything from fuel to drugs, inflation of nearly 40%, daily power outages of 13 hours and a historic default.
The nation will need about $ 6 billion in aid from International Monetary Fund and countries, including India and China, for the tide over the next six months, according to the prime minister Ranil Wikremesinghe. Local authorities are seeking to speed up bailout talks with the IMF to obtain other new sources of funding.
The economy of Sri Lanka it probably shrank in the first quarter, hit by public protests, political instability, high commodity prices and supply chain turmoil. According to Bloomberg Economics, a recession will be inevitable this year.

Related Posts

Leave a Reply

Your email address will not be published.