Fuel imports are impossible with failing economy and the OPEC nations backing out of aiding the ailing nation. Sri Lanka’s energy minister, Udaya Gammanpila, says daily blackouts of up to four hours are possible if the country cannot secure a large loan by March 2022. With dwindling foreign exchange reserves, Srilanka is facing severe power cuts as well as food and essential commodities stocks ebbing. This has caused its currency to depreciate, resulting in high import prices. Power cuts have been imposed at peak hours because the state power units cannot run turbines.
According to the minister, the country must be prepared to make the necessary sacrifices in this regard, and the state’s politicians need to lead by example. In addition, Gammanpila stated Sri Lanka will have to import fuel with the existing limited foreign reserves, at least until the monsoon season begins in April. Further, he said that the country would have to generate electricity with fuel until the monsoon season.
‘Is it not better that we implement one and a half-hour power cuts now rather than moving onto four-hour power cuts later on? Should we starve for 28 days after stuffing ourselves in star-class hotels for two days? Why not cook the meals at home by purchasing vegetables and fruits? This would allow us to have all three meals every day?’ Sri Lanka’s news outlet News 1st quoted the minister as saying.
Several factors are said to have contributed to the current state of crisis. Tourism has taken a beating since the Pandemic, which is partly to blame for the country’s slumping reserves. Furthermore, the government’s high spending and lowered tax rates have eroded state revenues and added to their misery.
Since the government printed money to pay off domestic loans and foreign bonds, inflation has been rising steadily. The World Bank estimates that since the beginning of the pandemic, 500,000 people have fallen below the poverty line, equivalent to five years of progress in reducing poverty.
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