The country of 22 million people is mired in its worst financial crisis in seven decades, when its foreign exchange reserves have plummeted to record levels, with dollars to pay for essential imports including food, medicine and fuel.
Chronic fuel shortages have worsened this week along kilometer-long lines at some gas stations across the country, leading to sporadic protests as vehicle owners wait sometimes overnight for petrol and diesel.
The stock covers fuel for vehicles, certain industries and essential services. A month ago, the Prime Minister had said that there is only enough petrol for a day.
Electricity and Energy Minister Kanchana Wijesera said Sri Lanka is unable to make $725 million in overdue payments to suppliers and is also struggling to open letters of credit for future shipments.
“We are struggling to get fuel supply due to our foreign exchange issues and the government is working to manage the existing stock of diesel and petrol till June 21,” he told reporters. “We are finding it very difficult to meet demand and if we do not cut back on non-essential travel and stop hoarding then stocks could run out fast.”
“We are expecting petrol shipments in the next three days and two more shipments in the next eight days,” he said.
Sri Lanka is awaiting official confirmation from the Indian government’s Exim Bank on a $500 million line of credit, which Wijesekera said will be used to fund fuel shipments for the next few weeks.
Wijesekera said Sri Lanka has reached out to several countries, including Russia, to discuss fuel import options, which will provide several months’ worth of supplies.
The country is also in talks with the International Monetary Fund for a bailout package and a delegation of the lender is expected to reach Sri Lanka on June 20.