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Sri Lanka: Fuel Halted for Private Cars, Citizens told to Stay Home

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New Delhi: In the middle of the financial crisis in the country, the government of Sri Lanka abruptly restricted fuel supplies and advised citizens to stay home. The island nation’s cabinet of ministers Monday decided to limit the distribution of fuel to essential services until July 10, spokesman Bandula Gunawardena said.

“Port, health services, food transport will be provided petrol and diesel while all other sectors are requested to stay at home and provide services online in this difficult time,” Gunawardena said. “Our country is facing an unprecedented state of finance and foreign exchange crisis.”

“The economy had completely collapsed. The island nation is unable to purchase fuel as shortages of essentials and electricity worsen,” Sri Lankan Prime Minister Ranil Wickremesinghe told lawmakers last week.

“The Government is in talks with the International Monetary Fund as well as bilateral creditors such as India and China for fresh funds to pay for imports after it defaulted on its dollar bonds earlier this year and saw foreign reserves dwindle,” Wickremesinghe added.

Violent protests erupted in May after President Gotabaya Rajapaksa’s brother resigned as prime minister following clashes between government supporters and opponents.

Sri Lanka plans to allow foreign companies to distribute fuel in a bid to ease crippling shortages that have paralyzed most economic activity, Energy Minister Kanchana Wijesekera said Sunday.

The government is sending its envoys to Qatar and Russia this week to secure fresh supplies and is hoping for approval from India for a $500 million credit line for fuel imports.

The High Commissioner of Sri Lanka to New Delhi Milinda Moragoda met with India’s Minister of Petroleum & Natural Gas and Housing and Urban Affairs Hardeep Singh Puri in New Delhi on Monday to discuss the possibility of securing petrol and diesel supplies that are required by the island nation on an urgent basis.

(Vinayak)