Amid its worst economic crisis in more than seventy years, Sri Lanka’s energy minister issued a dire warning about the country’s fuel stocks.
Sunday, Kanchana Wijesekera reported that the nation had only enough gasoline to last for less than a day at the current rate of consumption.
He also stated that the company’s next shipment of gasoline would not arrive for at least two weeks.
Sri Lanka halted sales of gasoline and diesel for non-essential vehicles last week due to its inability to pay for imports such as fuel, food, and medicine.
Mr. Wijesekera informed reporters that the country had remaining reserves of 12,774 tonnes of diesel and 4,061 tonnes of gasoline.
“The next gasoline shipment is anticipated between July 22 and July 23,” he added.
The weekend is expected to see the arrival of a shipment of diesel, but Mr. Wijesekera warned that the country does not have sufficient funds to pay for planned fuel and crude oil imports.
He stated that Sri Lanka’s central bank could only provide $125 million for fuel purchases, significantly less than the $587 million required for its scheduled shipments.
Mr. Wijesekera added that the nation owed seven suppliers $800 million for purchases made earlier this year.
It occurred after Sri Lanka prohibited the sale of fuel for private vehicles until the following week.
Experts believe it is the first country since the 1970s oil crisis, when fuel was rationed in the United States and Europe, to prohibit the sale of gasoline to the general public.
The 22-million-person island nation is experiencing its worst economic crisis since gaining independence from the United Kingdom in 1948, as it lacks sufficient foreign currency to pay for imports of essential goods.
Acute shortages of fuel, food, and medicines have contributed to record-breaking increases in the cost of living in a country where many people depend on motor vehicles for their livelihoods.
By Archana Shukla, India Correspondent for Business
Sri Lanka has not yet completely ceased to function, but it is dangerously close.
The ability to earn significant amounts of foreign currency is crucial for the crisis-stricken nation’s economy.
Consequently, the government has supported the continuation of export-driven industries.
Occasionally, textile and apparel manufacturers have been provided with fuel to power their machinery and transport their goods. However, this is also drying up now.
At the same time, tourism, the country’s largest source of revenue, has seen a 60 percent decline in bookings.
The near-total collapse of the local transportation system is not aiding the situation.
Currently, taxis and the ubiquitous three-wheeled tuk-tuks are only seen in seemingly endless lines at gas stations.
People who would normally commute to their employers’ offices have been instructed to work from home, which is likely for the best.
Meanwhile, the country’s still-developing IT sector has also been severely impacted by power outages and internet disruptions.
All of this has sparked fears of a so-called “brain drain,” in which a significant number of young professionals may leave the country.
While Sri Lanka’s present is already challenging, the future holds even more obstacles.
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A team from the International Monetary Fund concluded a new round of bailout negotiations with Sri Lanka on Thursday.
While no agreement has yet been reached, the team has made “significant progress in defining a macroeconomic and structural policy package,” according to a statement.
It added that it had “witnessed some of the hardships currently confronting the Sri Lankan people, particularly the poor and vulnerable who are disproportionately affected by the crisis.”
The cash-strapped nation has also dispatched representatives to the major energy-producing nations of Russia and Qatar to secure inexpensive oil supplies.
