Sri Lanka, which has a population of 22 million, is in one of the worst financial crunches in its experience in the last 70 years. There are mile long lines at gas stations, foreign exchange reserves have dwindled to nothing, and money is running out to pay for imported food, medicine, and fuel. Consumers are reportedly having to wait overnight in some cases for fuel.
Sri Lanka is currently awaiting confirmation from the Indian government for a credit line extension for fuel of $500 million to keep its consumers afloat. The country is overdue to supplier payments in the amount of $725 million and are struggling to open new lines of credit to other creditors for future shipments.
Sri Lanka has also reached out to other countries looking for support, one of them being Russia to discuss fuel import options. They are also in talks with the IMF for a bailout package. an IMF representative is to arrive on the 20th of June.
Source #1 Reuters
Source #2 U.S.News
Source #3 Aljazeera
Sri Lanka is currently awaiting confirmation from the Indian government for a credit line extension for fuel of $500 million to keep its consumers afloat. The country is overdue to supplier payments in the amount of $725 million and are struggling to open new lines of credit to other creditors for future shipments.
"We are struggling to get fuel supplies due to our forex issues and the government is working to manage existing stocks of diesel and petrol until the 21st of June." - Kanchana Wijesekera, Power & Energy Minister
Sri Lanka has also reached out to other countries looking for support, one of them being Russia to discuss fuel import options. They are also in talks with the IMF for a bailout package. an IMF representative is to arrive on the 20th of June.
Source #1 Reuters
Source #2 U.S.News
Source #3 Aljazeera