Sri Lanka May Face Fuel Shortages by January End, Signs Deal with India Redevelop Oil Tanks
New Delhi: The Island nation Sri Lanka may face a very dangerous fuel crisis in the country as Energy Minister Udaya Gammanpila Friday warned that by the third week of January the nation will run out of fuel. Sri Lankan authority urged the Central Bank to release the foreign reserve to import.
The Sri Lankan government on Tuesday had announced a USD 1.2 billion economic relief package amidst a severe foreign exchange crisis grappling the island nation.
The Energy Minister’s comments come hours after the Sri Lankan government had signed an agreement with India to jointly redevelop the strategic World War II-era oil tank farm in the island nation’s eastern port district of Trincomalee, in a new milestone in bilateral economic and energy partnership.
“There is this looming danger which I have informed the Cabinet no less than on 8 occasions. The Central Bank has to ensure Letters of Credit can be opened for cooking gas and fuel. We could substitute imported food with some local varieties, but for fuel, it is not possible,” Gammanpila said.
The sources in Sri Lanka – however, said last week, the Central Bank of Sri Lanka announced that the country’s foreign exchange reserves had doubled in the span of just one month, and touched USD 3.1 billion.
Sri Lanka on Thursday agreed on two main agreements of diplomatic interest with China and India as the country continues its balancing act of diplomacy and foreign partnership.
(_Vinayak Barot)
