Queuing to buy fuel in Colombo, Sri Lanka on May 17, 2022.. Photo Atul Loke / The New York Times.
Sri Lanka needs $ 6 billion by the end of the year to purchase fuel and other essential goods to stabilize its failing economy.
The question is where will that money come from?
One of its staunchest supporters, India, has provided $ 4 billion in credits and loans, which Sri Lanka has spent in recent months.
Prabani Ranawara, left, and his parents Deepa and R. Thomas, on the grounds of the presidential palace in Colombo, July 10, 2022. Photo Emily Schmall / The New York Times.
In the meetings held in Colombo, Indian officials have expressed their will continue to support the country.
But it is not clear how much India will still do.
The situation became so desperate that Sri Lanka asked the president of Russia Vladimir Putin a line of credit to purchase fuel.
Government delegations were even sent overseas to meet anyone who could help, including charities in Qatar.
Chinaa longtime ally of the ruling Rajapaksa family, he has largely kept aloof.
Sri Lanka’s monthly fuel bill alone amounts to around $ 500 million, and authorities have said many of its traditional fuel suppliers are reluctant to sell into the country. Photo Atul Loke / The New York Times.
In recent years, China has funded many of its major infrastructure projects with loans.
Sri Lanka’s monthly fuel bill alone amounts to approximately $ 500 million.
Officials said many of its traditional fuel suppliers are reluctant to sell to the country as the state-owned oil company is mired in debt it is struggling to repay.
In recent months, some suppliers have refused to unload tankers docked in Sri Lankan ports until paid.
Fuel shipments from India occasionally alleviate long queues at Sri Lankan gas stations.
But when stocks dwindled, the government rationed fuel and tried to stifle demand by ordering state employees to do so. work from homefor instance.
The shortage of cooking gas became so irreparable for a while that people stopped buying it, in some cases leaving empty cylinders on the street, chaining them to prevent theft.
Officials have urged foreign tourists to return to Sri Lanka’s pristine beaches and lush mountains in the hope that the hard currency they desperately need will arrive.
But the political turmoil and the logistical nightmare of transportation and power outages make that called a difficult sell.
The country is in talks with the International Monetary Fund restructuring billions of dollars of foreign debt, on which it defaults.
There are months to a new deal with the IMF, which could open the door to foreign funding and aid, and the talks have been further complicated by recent government changes.
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Mojib Masal
Source: Clarin
