Page 11 - AsianOil Week 20 2022

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Sri Lanka out of gasoline as India

assists with fuel, fertiliser

PERFORMANCE SRI Lanka has run out of gasoline, the country’s inflation, shortages of medicine, fuel and other
new prime minister, Ranil Wickremesinghe, essentials. Wickremesinghe said the treasury
declared on May 16 shortly after taking office. does not have the money to pay government
“At the moment, we only have petrol stocks workers and will have to resort to printing
for a single day. The next couple of months money.
will be the most difficult ones of our lives,” According to Wickremesinghe, Sri Lanka Neighbouring
Wickremesinghe warned during a televised needs $75mn in foreign exchange immediately
speech. “We must prepare ourselves to make in order to cover the costs of essential imports India has offered
some sacrifices and face the challenges of this such as fuels and medicines. He said three ship-
period.” ments of fuel are anchored in Colombo harbour its assistance to
Sri Lanka is in the midst of a financial cri- and ready to discharge their cargo, but are first
sis brought about by alleged corruption by the waiting to be paid for. The new prime minister Sri Lanka with
ruling Rajapaksas family. Sri Lankan President also said that fuel and electricity costs would the shipment of
Gotabaya Rajapaksas dismissed his older brother need to be raised substantially.
Mahinda as prime minister last week , appoint- Meanwhile, neighbouring India has offered 400,000 tonnes
ing Wickremesinghe in his place in an effort to its assistance to Sri Lanka with the shipment
placate the rioting population. Wickremesinghe of 400,000 tonnes of fuel to the island country, of fuel.
has previously served as prime minister five along with 65,000 tonnes of urea for use as fertil-
times before. Government critics see him as an iser. The fuel was delivered as part of an existing
unworthy replacement and continue to demand $1bn credit line that India has open for the coun-
the resignation of the president. try. Talks have taken place to ensure the contin-
In 2019, the country is estimated to have had uing supply of fertilisers. India has promised a
foreign exchange reserves amounting to $7.5bn, further $3bn in loans and assistance.
but the combined impact of the coronavirus Sri Lanka’s power and energy minister said on
(COVID-19) pandemic, rising oil prices and May 17 that one cargo of diesel had arrived from
populist tax cuts made by the Rajapaksas have India the previous day and that three more ships
landed Sri Lanka in a financial crisis. Chronic carrying fuel were scheduled to arrive over the
foreign exchange shortages have led to rampant next two weeks.™

Week 20 20•May•2022 www. NEWSBASE .com P11