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Sri Lanka’s economic activities are almost jammed when the island country, facing the worst financial crisis, running out of fuel for transportation and there are a few signs of new inventory that entered.
The government declared Friday as a holiday for public offices and schools to limit vehicle movements, leaving many roads inside and around the capital of Colombo. Meanwhile, thousands of vehicles lined up in the queue that stretches for kilometers because the driver is waiting for the charging station to be refilled.
Minister of Power and Energy Kanchana Wijesekera said on Thursday that Ceylon Petroleum Corp managed by the government had not received a tender for new fuel stocks because suppliers were blocked by extraordinary payments.
The South Asian people have reached several companies and countries, including Russia, for inventory and hope for approval from India for a new credit path of $ 500 million for fuel imports, said Wijesekera.
Sri Lanka’s economic destruction, the most terrible in its independent history, has seen protests erupting throughout the island for the past few months looking for the dismissal of the President of Gotabaya Rajapaksa and his family members from the government. The clan has been blamed for making decisions that have caused severe deficiencies from all from fuel to drugs, inflation of almost 40%, daily power outage for 13 hours and default historical debt.
This nation will need around $ 6 billion in assistance from international monetary funds and countries including India and China, to install for the next six months, according to Prime Minister Ranil Wickremesinghe. Local authorities are looking for fast bailout talks with the IMF to get other new funding sources.Sri Lanka’s economy is likely to be contracted in the first quarter, slammed by public protests, political instability, high commodity prices and supply chains. According to Bloomberg Economics, this year’s recession is inevitable.
