Sri Lanka is expected to run out of fuel in the coming days, prompting the government to close schools in the capital Colombo and order government officials to work from home, while military personnel hand out tokens to people lining up to fill their vehicles’ tanks.
The country is suffering its worst economic crisis in seven decades, with currency reserves at record lows and the island of 22 million people struggling to pay for essential imports of food, medicine and, most critically, fuel.
Industries such as clothing, a major source of income for the Indian Ocean country, have fuel for up to 10 days.
Public transport, power generation and medical services will have priority in fuel distribution, with some rationing for ports and airports.
“I’ve been in line for four days, I haven’t slept or eaten well during that time,” said rickshaw driver WD Shelton, 67, one of those who received a token meant to keep his place in line for when fuel becomes available.
“We can’t win, we can’t feed our families,” added Shelton, who was 24th in line at a gas station in downtown Colombo but stuck around because he didn’t have gas for the way to his home, which is 5 km away.
The government is talking to the International Monetary Fund (IMF) about a possible bailout, but many people cannot wait that long. The navy arrested 54 people off the east coast as they tried to leave by boat, a spokesman said, in addition to 35 “boatmen” detained last week.
President Gotabaya Rajapaksa’s older brother resigned as prime minister last month after clashes between pro- and anti-government protesters escalated into violence across the country, leaving nine dead and about 300 injured. An escalation of fuel shortages could lead to a new wave of demonstrations.
Opposition leader Sajith Premadasa called for the government to step down.
“The country has completely collapsed due to fuel shortages,” he said in a video statement. “The government has lied to people repeatedly and has no plans on how to move forward,” he concluded.
power outages
The government’s fuel stockpile is around 9,000 tonnes of diesel and 6,000 tonnes of gasoline, the Energy Minister said on Sunday, but there is no forecast of new shipments.
The Indian Oil Corporation’s local unit told Reuters it had 22,000 tonnes of diesel and 7,500 tonnes of gasoline, and expected another shipment of 30,000 tonnes of gasoline and diesel combined around July 13.
Sri Lanka consumes around 5,000 tonnes of diesel and 3,000 tonnes of gasoline a day just to meet its transport needs, IOC Lanka chief Manoj Gupta told Reuters.
Other big consumers are industries such as apparel and textile companies, whose exports rose 30%, to US$ 482.7 million in May, according to data released this Monday (27).
“We have enough fuel for the next seven to 10 days, so we are managing,” said Yohan Lawrence, secretary general of the Sri Lankan Joint Forum of Apparel Associations.
“We are watching and waiting to see if new fuel stocks arrive and what will happen in the next few days.”
Sri Lanka’s energy regulator said the country was using its last supplies of furnace oil to operate several thermal power plants and minimize power cuts, which will increase to three hours from today.
“We expect to keep the power cuts to three to four hours for the next two months,” said Janaka Ratnayake, chairman of the Sri Lanka Public Utilities Commission. “But given the situation in the country, that could change.”
Financial help
The government told employees to work from home until further notice, while schools were closed for a week in and around the commercial capital of Colombo.
Queues at gas stations have grown rapidly since last week.
An IMF team is visiting Sri Lanka to discuss a $3 billion rescue package. The country hopes to reach a team-level agreement before the visit ends on Thursday, which is unlikely to release immediate funds.
(Posted by Lucas Schroeder)
Source: CNN Brasil
