Sri Lanka runs out of gas and can’t import because they don’t have dollars

COLOMBO, KOMPAS.com – Sri Lanka is running out of gasoline and has no dollars to import fuel, new prime minister Ranil Wickremesinghe said on Monday (16/5/2022).

“We’re out of gas… Right now, we only have one day in stock,” he said, warning that Sri Lanka goes bankrupt may face more difficulties in the coming months.

He added that the government also did not have the dollars to pay for the three shipments of oil. Currently a number of ships are still waiting outside Colombo port for payment before unloading their cargo.

Read also: What’s Wrong with Sri Lanka: Why Bankruptcy and Causes of Debt Default

Sri Lanka is in the throes of its worst economic crisis with its 22 million people struggling to get food, fuel and medicine while facing record inflation and prolonged power outages.

Wickremesinghe took office last Thursday (12/5/2022) after his predecessor, Mahinda Rajapaksa, was forced to step down after weeks of demonstrations over the government’s handling of the economic crisis that turned into riots.

“The next few months will be the most difficult of our lives,” Wickremesinghe said. “I have no desire to hide the truth and lie to the public.”

However, he urged residents to be patient for the next few months and vowed to overcome the Sri Lankan crisis.

Read also:

He continued, the government also ran out of cash to pay the salaries of 1.4 million civil servants in May, and would turn to printing money as a last resort.

“Unlikely, I was forced to allow the printing of money to pay civil servants and pay for essential goods and services,” he said.

He also warned that fuel and electricity fares would be raised substantially and his government would also sell off the loss-making national carriers to cut losses.

Sri Lanka has requested an IMF bailout and one of the main demands of international lenders is for Colombo to release loss-making state companies, including Sri Lanka Airlines whose losses exceeded $1 billion.

Read also: Sri Lanka Bankrupt, Restricted Purchase of Fuel, 4 Liter Motorcycle, 19.5 Liter Car

Get updates news of choice and breaking news every day from Kompas.com. Let’s join the Telegram group “Kompas.com News Update”, how to click the link https://t.me/kompascomupdate, then join. You must first install the Telegram application on your cellphone.–