COLOMBO: Short on money As its extraordinary economic crisis worsened, Sri Lanka called for a partial closure and announced a two-week suspension of all fuel sales, with the exception of critical services, beginning on Monday.
The South Asian country has been unable to pay for even the importation of necessities since late last year due to its biggest economic collapse since achieving independence from Britain in 1948.
According to government spokesman Bandula Gunawardana, the sales embargo was implemented to save gasoline and diesel for emergencies as fuel stocks reached their absolute lowest and supplies were barely adequate for one more day.
As public transportation came to a standstill, he pleaded with the business sector to permit employees to work from home.
In a pre-recorded announcement, Gunawardana added, “As of midnight today, no fuel will be supplied other than for vital services like the health sector, since we want to save the limited supplies we have.
He expressed regret to the public for the inconvenience the shortages had caused: “We regret the people’s trouble.”
The unexpected fuel embargo occurred as the state-run electrical monopoly, which is in the red, requested a significant price increase for its most vulnerable clients.
According to the Public Utilities Commission of Sri Lanka (PUCSL), the Ceylon Electricity Board (CEB) lost 65 billion rupees ($185 million) in the first quarter and requested an almost tenfold price increase for the most vulnerable customers.
Anyone who consumes less than 30 kilowatts per month currently pays a flat rate of 54.27 rupees ($0.15); the CEB wants to increase this to 507.65 rupees ($1.44).
According to PUCSL chairman Janaka Ratnayake, “the majority of domestic consumers will not be able to pay this type of high increase.”
Therefore, we suggested a direct Treasury subsidy to keep the rise to less than half of what they had requested.
The CEB would be permitted to charge customers who earn foreign currency, such as exporters, in dollars as part of measures to address the forex problem that caused the energy shortage.
