Sri Lanka to function solely important companies until July 10 amidst acute gas scarcity

The Sri Lankan authorities on Monday introduced that solely important companies will function from midnight until July 10 and all different operations will probably be quickly suspended because the crisis-hit nation faces acute gas shortages.

The transfer got here days after Prime Minister Ranil Wickremesinghe on Wednesday mentioned that the debt-laden financial system of the island nation has “collapsed” after months of shortages of meals, gas and electrical energy, and can’t even buy imported oil.

Sri Lanka’s Cabinet of Ministers determined that solely important companies will function from Monday midnight to July 10.

“Fuel will probably be issued solely to well being, defence, energy and export sectors from midnight at this time till July 10,” Cabinet spokesperson Bandula Gunawardena instructed reporters.

The state-run Ceylon Petroleum Corporation (CPC) will situation diesel and petrol just for important companies with impact from midnight, it mentioned.

These companies embrace ports, airports, well being, meals distribution and agriculture, the report mentioned, quoting transport minister Gunawardena.

“All other sectors must prepare for work from home programme,” he mentioned, urging the general public to help the federal government’s transfer to restrict the consumption of gas.

Only important companies will probably be allowed to perform until July 10 and all different operations will probably be quickly suspended, the minister mentioned.

While the federal government mentioned talks have been held with India for a recent credit score line, negotiations to purchase discounted Russian oil have additionally obtained underway.

A ministerial delegation is to go to Russia for talks, the federal government mentioned.

Sri Lanka has been going through the worst financial disaster since independence in 1948, which has prompted an acute scarcity of important objects like meals, drugs, cooking fuel and gas throughout the island nation.

Wickremesinghe instructed Parliament on Wednesday that presently CPC has USD 700 million in debt. “As a result, no country or organisation in the world is willing to provide fuel to us. They are even reluctant to provide fuel for cash,” he mentioned.

The nearly-bankrupt nation, with an acute international foreign money disaster that resulted in international debt default, had introduced in April that it’s suspending almost USD 7 billion international debt reimbursement due for this yr out of about USD 25 billion due by 2026. Sri Lanka’s complete international debt stands at USD 51 billion.

The international foreign money disaster has crimped imports, creating extreme shortages of meals, gas, electrical energy and different necessities like medicines, forcing folks to face in lengthy strains to fulfil primary wants.

The Indian credit score strains since January this yr have supplied a lifeline to Sri Lanka amidst rising public dissent over the worsening financial circumstances. However, Prime Minister Wickremesinghe mentioned India wouldn’t be capable of preserve Sri Lanka afloat for too lengthy.