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India To Supply Fuel To Sri Lanka Only After Advance Payment

The sources have claimed that India has agreed to provide Sri Lanka with the fuel only if they are ready to pay in advance.

Photo Credit : Reuters

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The sources have claimed that India has agreed to provide Sri Lanka with the fuel only if they are ready to pay in advance.

According to two Indian government officials, with its economy in shambles, the island nation ran out of dollars to buy fuel from its larger South Asian neighbours. Some fuel shipments are being held up for cash payments by Sri Lanka's Ceylon Petroleum Corp.

Indian Oil Corp is awaiting confirmation of advance payment for at least four shipments of gasoline and diesel, in line with Ceylon Petroleum's shipment schedule, posted by Energy Minister Kanchana Wijesekera on Twitter. During the last few months, India has already provided Sri Lanka with over USD 3.5 billion in food, medicine, and fuel assistance.

Sri Lanka expected India to approve a USD 500 million credit line for fuel purchases given the fact that its foreign exchange reserves have been depleted. In addition to seeking supplies from Qatar, the island nation's government is pursuing oil from Russia as well.

The fuel shortage is causing thousands of vehicles to queue at filling stations, and due to this, public schools and offices are closed until 10 July.

To ease the crippling shortages, Ceylon Petroleum is offering guaranteed fuel quotas in advance for companies who are willing to pay in dollars. Additionally, foreign companies will be allowed to distribute fuel to help alleviate the crisis that has slowed most economic activity.


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sri lanka petrol crisis