Sri Lanka runs out of fuel, permits only essential services to operate till July 10

Sri Lanka on Monday ran out of fuel and restricted the use of the leftover supply for only the essential services. In a dramatic turn of the events, the government on June 26 scrambled to impose a ban on the use of the fuel by the public, ordering that the fuel will only be consumed by sectors linked to essential services effective midnight 12 am until July 10. Sri Lankan Prime Minister Ranil Wickremesinghe declared that the country's economy has “collapsed.” Colombo published a list of essential services that include health, law and order, ports, airport, food distribution and agriculture. All non-essential services have been suspended with immediate effect. 

"From midnight today, no fuel will be sold except for essential services like the health sector, because we want to conserve the little reserves we have," government spokesman Bandula Gunawardana was quoted saying by the agencies. 

Sri Lankan government, in a drastic measure, shuttered the businesses, and schools, and asked the employees of private offices to work from home. It mandated that government employees stay at home and work. "Fuel will be issued only to health, defence, power, and export sectors from midnight today until July 10," Cabinet spokesperson Bandula Gunawardena said in a statement. 

Sri Lankans wait at petrol bunks after denied fuel. Credit: Associated Press

The debt-ridden island nation of 22 million people witnessed the scenes of chaos due to the worst economic crisis that has befallen on the country for the first time since its independence in 1948. Colombo has been unable to import essential commodities such as food, medicines or fuel since 2021 after running out of dollars in the government foreign reserve. The situation is worsened due to the global inflation caused due to the ongoing Russia Ukraine war. 

India discussing help for nearly-bankrupt island nation

State-run Ceylon Petroleum Corporation (CPC) notified that will implement the government orders and will sell diesel and petrol to only essential services that include ports, airports, health, food distribution and agriculture. "All other sectors must prepare from work from home programme," the country’s transport minister Gunawardena told the state agency reporters. Furthermore, he urged the public to support the government’s initiative and halt the consumption of fuel or transportation. Sri Lanka has contacted India to discuss the fresh credit line, and talks to buy oil from New Delhi have commenced. 

Overall, the CPC has $700 million in debt and therefore, “no country or organisation in the world” is willing to provide fuel to a nearly-bankrupt island nation, prime minister Wickremesinghe reportedly told the parliament. India has come to help the neighbouring country.  “They [world] is even reluctant to provide fuel for cash,” Sri Lankan prime minister lamented. The foreign currency crisis has crimped imports and flared the shortage of food, fuel, cooking gas, electricity, and essential items such as medicines. India thus far has provided Sri Lanka aid worth close to $3.5 billion.