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“Economy has completely collapsed”: Sri Lanka is currently unable to buy fuel

Sri Lanka said India could not support his country indefinitely and the economy is now starting from a solid place.

To:
HT Autodesk

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Updated:
June 22, 2022, 4:33 pm

File photos of people waiting for fuel at a gas station in Colombo, Sri Lanka. (AP)

Sri Lanka’s Prime Minister Ranil Wickremesinghe told his parliament on Wednesday that the island’s economy had “completely collapsed” and that the oil companies here were in huge debt and could not buy imported fuel. Essentials such as gasoline, diesel, kerosene, and even groceries have been very scarce, but without them at all, very high prices make little sense.

Wickremesinghe took office as Prime Minister of Sri Lanka a month ago, and during an unprecedented economic crisis, commodity prices soared to record highs. So far, the country has managed to get through highly volatile waters thanks to its $ 4 billion credit line. However, Wickremesinghe admitted on Wednesday that India would not be able to provide support indefinitely. “Currently, Ceylon Petroleum Corporation has a $ 700 million debt. As a result, no country or organization in the world is ready to fuel us. We are even reluctant to fuel cash.” rice field. Take this opportunity. We are now seeing signs of the possibility of falling to the bottom of the rock. “

In many cities in Sri Lanka, one-mile long lines outside gas stations are common. Drivers often have to wait up to 12 hours for the tank to fill up with fuel. Earlier this month, a fuel ration system was announced, but was previously convened by national troops to maintain order due to sporadic cases of violence and theft. Concerns about the possibility of false sums have also been raised.

Sri Lanka does not have its own oil reserves and its economy has relied primarily on tourism, tea and rice production. The Covid-19 pandemic and the Russian-Ukraine War were double pains for countries that experienced massive protests leading to Mahinda Rajapaksa’s resignation.

Fuel may be considered a luxury item in an era when even medicine is scarce. The country has received a pledge of up to $ 600 million from the World Bank and authorities will land here to discuss relief packages.

(There is input from AP)

First release date: June 22, 2022, 4:20 pm IST

https://auto.hindustantimes.com/auto/news/economy-has-completely-collapsed-sri-lanka-now-unable-to-buy-fuel-41655894212097.html “Economy has completely collapsed”: Sri Lanka is currently unable to buy fuel

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