News
As fuel crisis worsens; Govt. goes for unsolicited proposals
Only three shipments due this month; India, China yet to respond to Lanka’s requests
The Government has opted to consider unsolicited proposals for fuel supplies amid delays over financial commitments from India and China to buy diesel and petrol for the upcoming weeks, senior officials said.
Accordingly, Cabinet approval has been sought to pursue at least six unsolicited proposals for fuel purchases as the crisis deepened with kilometres-long queues lasting for days.
The Government is looking at the option of buying fuel on a 180-day credit basis.
The moves come with only three more scheduled shipments – two carrying petrol and one diesel — due in the country for this month. One of the petrol shipment is due today while the diesel and the other petrol ships are due next Friday. In addition, two crude oil shipments are also scheduled to arrive on June 29.
The Government has held talks with state and private banks to raise part of the required US dollars to pay for the shipments, while the Treasury and the Central Bank make arrangements for meeting the balance payment.
This development comes as the Government is awaiting responses from India for a US$ 500 million credit line which could be made use for fuel purchases and another US$ 500 million loan from China’s Exim Bank to be used for fuel purchases.
Power and Energy Minister Kanchana Wijesekara this week disclosed that Sri Lanka owed fuel suppliers more than US$ 700 million, and therefore it was difficult to attract suppliers.
The Government needs an estimated US$ 525 million a month for fuel purchases.
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