Economic Crisis: Sri Lanka Runs Out Of Fuel, Suspends Sales For Two Weeks

Cash-strapped Sri Lanka suspended nationwide fuel sales, except for essential services, for nearly a fortnight as the island faces a rapidly worsening economic crisis.

The list of essential services will include health, law and order, ports, airport, food distribution and agriculture.

AFP

All non-essential services have been suspended till July 10, and the existing fuel reserves have been reserved for the essential services. The government has also introduced a token system to distribute the fuel.

¡°From midnight today, no fuel will be sold except for essential services like the health sector, because we want to conserve the little reserves we have,¡± government spokesman Bandula Gunawardana was quoted as saying by news agency AFP on Monday.

AFP

Schools will remain shut and employees of private offices have been asked to work from home. Government officials have been asked to opt for work from home too.

This is the first time the island nation of 22 million people has run out of fuel. Since the beginning of this year, the price of fuel has jumped five-fold. The last price hike took place Sunday.

AFP

The price of diesel is retailing at 460 Lankan rupee and petrol retailing at 550 per litre.

There is no clarity on new shipments of oil, the Sri Lankan energy minister has confirmed and urged citizens not to queue up at fuel stations. A shipment was supposed to arrive today, but suppliers have expressed their inability to deliver, citing non-commitment of payments and logistic issues. No further shipments have been scheduled as the country has run out of dollars, India Today reported.

AFP

Sources said Lankan ministers will travel to Russia and Qatar to discuss more fuel for the country in the coming days. The International Monetary Fund is in Sri Lanka for talks on a possible bailout package.

Sri Lanka has been reeling under its biggest economic crisis since its Independence in 1948 and has been unable to finance the import of food, medicines or fuel since late last year.

Earlier this month, the Public Administration ministry ordered all departments, public institutions and local councils to maintain skeleton services in view of the fuel shortage.

AFP

¡°Due to scarce public transport as well as the inability to arrange private vehicles, it is decided to drastically curtail the number of employees reporting to work,¡± the ministry's order said.

The order came a day after the United Nations launched its emergency programme. Four out of five people in Sri Lanka are skipping meals as they cannot afford to eat, the UN said.

Sri Lanka will allow companies from oil-producing countries to import and sell fuel, the power and energy minister said on Tuesday, ending a duopoly as it tries to overcome a shortage of petrol and diesel that is exacerbating an economic crisis.