financetom
World
financetom
/
World
/
Sri Lanka plunges into 10-hour daily power cut as fuel crisis worsens
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Sri Lanka plunges into 10-hour daily power cut as fuel crisis worsens
Mar 30, 2022 3:41 AM

The Sri Lankan government on Wednesday imposed a nationwide 10-hour daily power cut due to the shortage of hydro-electricity triggered by the non-availability of fuel. Sri Lanka is facing an unprecedented acute economic and energy crisis caused due to shortage of foreign exchange. A sudden rise in prices of key commodities and fuel shortage forced tens of thousands of people to queue for hours outside petrol filling stations. People are also facing long hours of power cuts daily.

All essentials are in short supply due to import restrictions forced by the forex crisis. The daily power cuts in the island nation have been further extended Wednesday morning to 10 hours, officials said.

The country has been facing a seven-hour power outage since the beginning of the month. There is a shortage of 750 megawatt due to the non-availability of fuel to generate thermal power, the chair of the Public Utilities Commission Janaka Ratnayaka said.

State-run Ceylon Petroleum Corporation (CPC) has asked motorists not to queue outside fuel stations on Wednesday and Thursday to purchase diesel as it was unable to pay for a shipment that had arrived. It was, however, not clear from where the shipment had arrived.

The CPC said the unloading of the ship would happen only on Friday. Energy minister Gamini Lokuge said the government will make an urgent purchase of 6,000 metric tonnes of diesel from LIOC, the Lanka subsidiary of Indian Oil Corporation.

It will be used for emergency services and power generation, he said. Lokuge said a shipment of diesel under the Indian credit line was expected on Thursday.

India recently announced to extend a USD 1 billion line of credit to Sri Lanka as part of its financial assistance to the country to deal with the economic crisis following a previous USD 500 billion line of credit in February to help it purchase petroleum products. During his just-concluded visit to Colombo, External Affairs Minister S Jaishankar had assured India's continued support in Sri Lanka's economic recovery process.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
GLOBAL MARKETS-Dollar dips, stocks steady as traders brace for Fed easing
GLOBAL MARKETS-Dollar dips, stocks steady as traders brace for Fed easing
Sep 22, 2024
* Traders still debating odds of 50 bps or 25 bps Fed cut * Robust U.S. retail sales briefly tipped scale toward 25 bps * Dollar drops vs yen, but 2-year Treasury yield tick up (Updates prices as of 0841 GMT) By Kevin Buckland and Sruthi Shankar Sept 18 (Reuters) - The dollar slipped on Wednesday while Treasury yields edged...
CEE MARKETS-Crown, forint steady ahead of interest rate decisions
CEE MARKETS-Crown, forint steady ahead of interest rate decisions
Sep 22, 2024
PRAGUE, Sept 20 (Reuters) - Central Europe's currencies steadied against the euro on Friday, with the Hungarian forint and Czech crown holding near recent levels ahead of central bank policy meetings next week that may deliver further interest rate cuts. After mostly shrugging off the U.S. Federal Reserve's decision to start its easing cycle with a larger than usual interest...
Abrdn to cut China from emerging markets fund
Abrdn to cut China from emerging markets fund
Sep 22, 2024
LONDON, Sept 20 (Reuters) - British fund manager abrdn is cutting out investments to China from one of the company's emerging market funds, in response to client demands for greater choice in managing their exposure to the country, the company said in a statement. Abrdn ( SLFPF ) will relaunch its Emerging Markets Sustainable Equity Fund to exclude China and...
Oil prices fall on mixed storage report ahead of Fed decision
Oil prices fall on mixed storage report ahead of Fed decision
Sep 22, 2024
* U.S. crude stocks fall, gasoline and distillate build, EIA says * Middle East tensions in focus after pager blasts * Coming up: US Fed interest rate decision (Recasts, updates to show prices have turned negative) By Laila Kearney NEW YORK, Sept 18 (Reuters) - Oil prices fell on Wednesday as the market cautiously awaited a rate cut announcement from...
Copyright 2023-2025 - www.financetom.com All Rights Reserved