Sri Lanka Battles Fuel Shortage Amid Foreign Exchange Crisis
Sri Lanka has been hit by a fuel crisis for the past few months with its economy hit hard due to the coronavirus pandemic as foreign exchange has run short.
Reports claim the Sri Lankan government is arranging millions of dollars in payment in order to import 40,000 tons of diesel as the country faces a massive fuel shortage.
Sri Lanka has been hit by a fuel crisis for the past few months with its economy hit hard due to the coronavirus pandemic as foreign exchange has run short.
The island nation reportedly has just six days of diesel left since the country does not have enough foreign exchange to pay for fuel imports. The country's national petrol corporation has been rationing distribution just enough to keep pumping stations operating in the country.
The fuel crisis has led to power supply shortages in the country with residents experiencing daily load shedding as thermal power stations have been hit. Reports claim fuel stations have been running dry amid the shortage.
According to Sri Lanka's energy minister Udaya Gammanpila, the country is unable to pay for the two shipments of fuel due to the acute shortage of forex reserves.
Ceylon Petroleum Corporation (CPC) had said last week it was unable to buy fuel from abroad due to economic conditions in the country.
The Indian Oil Corporation had sent 40,000 metric tonnes of diesel and petrol to Sri Lanka earlier this month even as the Indian government had announced a $900 million loan to Sri Lanka.
The country has also witnessed food shortage and rising inflation with its key industry tourism hit badly due to the coronavirus pandemic in the last two years.
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