Sri Lanka’s economic activity grinds to halt as fuel supplies run dry
Minister of Power and Energy Kanchana Wijesekera said on Thursday that the state-run Ceylon Petroleum Corp hadn’t received tenders for fresh stocks of fuel because suppliers were deterred by outstanding payments.
The South Asian nation has reached out to several companies and countries, including Russia, for supplies and was hoping for the approval from India for a fresh $500 million credit line for fuel imports, Wijesekera said.
The nation will need about $6 billion in aid from the International Monetary Fund and countries including India and China to tide over the next six months, according to Prime Minister Ranil Wickremesinghe. Local authorities are looking to fast-track bailout talks with the IMF in order to get other fresh sources of funding.
Sri Lanka’s economy likely contracted in the first quarter, slammed by the public protests, political instability, high commodity prices, and supply-chain snarls.