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Bankrupt Sri Lanka Offers Fuel To Dollar-Paying Firms
The government of Sri Lanka has closed public schools and offices till 10 July, considering there is no money to import goods, the country must conserve fuel
Photo Credit : Twitter
Sri Lanka Flag
Amid the economic crisis, Sri Lanka is offering a guaranteed fuel quota to any company that can pay in dollars.
Energy Minister Kanchana Wijesekera tweeted on Sunday that applicants must pay a month's worth of deposits in advance in order to open a consumer account with state-run Ceylon Petroleum Corp. The minister says fuel will be distributed on a daily or weekly basis beginning from 12 July.
The government of Sri Lanka has closed public schools and offices till 10 July, considering there is no money to import goods, the country must conserve fuel.
Many of the roads have been deserted across the island, even though thousands of vehicles have been parked at gas stations waiting for the filling station to replenish.
According to the Ministry of Power and Energy's recent announcement, Deshan Pushparajah, head of global markets and investment banking at CAL Sri Lanka, said Sri Lanka is on the verge of increasing its dollarization in response to near term challenges. He added that dollar preferences by the Ceylon Petroleum Corporation are likely to encourage some of its larger clients, such as the Ceylon Electricity Board, to announce similar moves in the near future.
Efforts to reach out to central bank governor Nandalal Weerasinghe, who begins a new six-year term on Monday, were unsuccessful.
In a bid to alleviate the crippling shortages, Sri Lanka plans to allow foreign companies to distribute fuel, and diesel and furnace oil can be sold in dollars by marine bunker operators.
During the past week, the energy minister visited Qatar to obtain new fuel supplies, and the government hopes to receive approval from India for a USD 500 million fuel credit line.
Last month, the plantation minister told lawmakers that the government is researching ways to conduct tea auctions in dollars. Additionally, local media reports that shipping agents are requiring exporters to pay freight in dollars, and that dollars are used instead of the local currency by the airlines.