Colombo: Sri Lanka On Wednesday, a record 10-hour daily power cut across the country began as it ran out of hydroelectric power due to a severe fuel shortage.
The South Asian country of 22 million people is in its worst economic crisis since independence in 1948 due to a severe shortage of foreign exchange to pay for imports.
The state power monopoly said it was cutting power from seven hours to 10 hours since the beginning of the month, as there was no oil to power thermal generators.
Officials said more than 40 percent of Sri Lanka’s electricity is generated from hydro, but most of the reservoirs were running dangerously low because it hadn’t rained.
Most of the electricity generation comes from coal and oil. Both are imported but the supply is short as the country does not have enough foreign exchange to pay for the supplies.
Meanwhile, the main fuel retailer, state-owned Ceylon Petroleum Corporation (CPC) said that there will be no diesel in the country for at least two days.
The CPC asked motorists waiting in long queues at petrol stations to exit and return only after unloading and distributing imported diesel.
Fuel prices have also risen repeatedly, with petrol rising by 92 per cent and diesel by 76 per cent since the beginning of the year.
Officials said it took 12 days for the government to find $44 million to pay for the latest shipments of LP gas and kerosene.
Colombo imposed sweeping import restrictions in March 2020 to save the foreign currency needed to repay its $51 billion of foreign loans.
But this has led to widespread shortage of essential commodities and sharp rise in prices.
Many hospitals have stopped routine surgeries, and supermarkets have been forced to ration staple foods, including rice, sugar and milk powder.
The government has said it is seeking a bailout International Monetary Fund Seeking more loans from India and China.
The crisis was exacerbated by the COVID-19 pandemic, which torpedoed tourism and remittances. Many economists also blame government mismanagement, including years of tax cuts and budget deficits.
The South Asian country of 22 million people is in its worst economic crisis since independence in 1948 due to a severe shortage of foreign exchange to pay for imports.
The state power monopoly said it was cutting power from seven hours to 10 hours since the beginning of the month, as there was no oil to power thermal generators.
Officials said more than 40 percent of Sri Lanka’s electricity is generated from hydro, but most of the reservoirs were running dangerously low because it hadn’t rained.
Most of the electricity generation comes from coal and oil. Both are imported but the supply is short as the country does not have enough foreign exchange to pay for the supplies.
Meanwhile, the main fuel retailer, state-owned Ceylon Petroleum Corporation (CPC) said that there will be no diesel in the country for at least two days.
The CPC asked motorists waiting in long queues at petrol stations to exit and return only after unloading and distributing imported diesel.
Fuel prices have also risen repeatedly, with petrol rising by 92 per cent and diesel by 76 per cent since the beginning of the year.
Officials said it took 12 days for the government to find $44 million to pay for the latest shipments of LP gas and kerosene.
Colombo imposed sweeping import restrictions in March 2020 to save the foreign currency needed to repay its $51 billion of foreign loans.
But this has led to widespread shortage of essential commodities and sharp rise in prices.
Many hospitals have stopped routine surgeries, and supermarkets have been forced to ration staple foods, including rice, sugar and milk powder.
The government has said it is seeking a bailout International Monetary Fund Seeking more loans from India and China.
The crisis was exacerbated by the COVID-19 pandemic, which torpedoed tourism and remittances. Many economists also blame government mismanagement, including years of tax cuts and budget deficits.