Sri Lanka has sought refuge in India to meet fuel shortages

Colombo, Apr 11 (EFE) – Sri Lanka is in talks with neighboring India to get another $ 500 million in fuel loans to help it meet the shortage of goods from the country’s severe economic crisis. Island Country.

Sumit Wijesinghe, chairman of the Ceylon Petroleum Corporation (CPC), told a news conference, “We are in talks for another $ 500 million.

He added that the purpose of the new loan would be to ensure fuel for the island, which has already been used for “between $ 375 and $ 400 million” out of the $ 500 million loan if the tariff plan, issued by Indian authorities weeks ago, is exhausted. Wijesinghe.

Sri Lanka has been trying for weeks to tackle fuel shortages, which forced the longest power outage in the country’s history to 13 hours late last month.

Wijesinghe said the massive debt and lack of dollars to buy fuel had forced the island nation to delay diesel and petrol exports for the past three months, with two ships still waiting to pay for their services.

Considered a way to increase its influence over Sri Lanka to the detriment of China, neighboring India has been injecting goods into the country for months, which has seen a 65% depreciation of the national currency in a month. President of the State Oil Company.

CPC’s debt stood at 360 billion rupees ($ 1.1 billion), while Sri Lanka’s monthly fuel import tariff increased from 450 million rupees in February to 700 million dollars in April.

Due to the lack of dollars in the country, the CPC has been forced to sell fuel at a lower price than the market price.

We are losing 52 rupees per liter of petrol ($ 0.16) and 110 rupees ($ 0.34 per liter) of diesel. ” They are enduring because of the support of the Sri Lankan government, he added.

Sri Lankan Prime Minister Mahinda Rajapakse is expected to appear this afternoon in support of his brother President Gotabhaya Rajapakse, who resigned from his cabinet this afternoon, amid ongoing protests in the country over dealing with the economic crisis.

Sri Lanka is facing an unprecedented economic crisis caused by the country’s high debt, the recession caused by epidemics and the sharp decline in tourism activities.

In addition the printing of money and the consequent depreciation of the national currency encouraged the government to meet public spending. EFE

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