Schools have already been shut, and people have been asked to work from home
The Sri Lankan government on Monday announced to limit fuel supply to essential services only until July 10 and directed residents to stay home, as the country faces the worst economic crisis in decades, with foreign exchange reserves at a record low.
The government is struggling to provide essential items due to a worsening sovereign debt crisis. In May, the country defaulted on its debts with international lenders for the first time in its history.
Fuel will be supplied to essential services only
Government spokesman Bandula Gunawardena announced the decision in a televised statement, which led to further unrest and chaos in the country. Following the latest restrictions, for the next two weeks, fuel will be supplied only to services deemed essential, including buses, trains, vehicles used for medical services, and vehicles transporting food.
“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.”
Schools in urban areas have already been closed, while the civil servants have been asked to work from home to curtail transport. Interprovincial public transport would likely come to a halt, hinted Gunawardena.
Sri Lanka unable to purchase fuel
Sri Lankan Prime Minister Ranil Wickremesinghe last week told cabinet members that the economy had “completely collapsed,” adding that the country is unable to purchase fuel as shortages of essentials and electricity worsen.
Bailout deal
The South Asian nation is in talks over a bailout deal as it struggles to pay for imports such as fuel and food. The Wickremesinghe government is in talks with the International Monetary Fund (IMF) as well as China and India for fresh funds to pay for imports.
The Central Bank of Sri Lanka will clear outstanding dues to companies for fuel supplies “with a plan,” according to a statement issued from the president’s office on Monday.
Sri Lankan President Rajapaksa has directed concerned officials to take “immediate action to import fuel using the existing funds available until then,” it said without elaborating.
The government is also sending delegations to Russia and Qatar over the next few days to secure fresh fuel supplies and is expecting India to approve a $500 million credit line for fuel imports.