Sri Lanka Cut Off from Fuel Supply... Government Urges "Please Stay Home"

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyunjung] Sri Lanka, which has been suffering from a national debt crisis, is effectively moving towards a blockade due to a fuel supply shutdown.

According to Bloomberg on the 27th (local time), government spokesperson Bandula Gunawardena announced that schools will be closed starting from the 28th, and all fuel sales will be suspended until the 10th of next month. He also urged the private sector to work from home. He added that fuel for essential services such as public transportation may be sold, but inter-regional public transportation could be halted.

Spokesperson Gunawardena stated, "Ports, medical services, and food transportation will be supplied with gasoline and diesel," while asking people to refrain from going out otherwise. He emphasized, "Our country is facing an unprecedented financial and foreign exchange crisis."

Ranil Wickremesinghe, Sri Lanka's Prime Minister and Finance Minister, warned last week of a complete national collapse, saying that shortages of essentials and electricity have worsened, making it impossible to purchase fuel with cash.

Authorities have been in talks with the International Monetary Fund (IMF) and bilateral creditors such as India and China for new funds to pay for imports after defaulting on dollar bond debt and a decline in foreign exchange reserves earlier this year.

The spokesperson said that foreign companies will be allowed to distribute fuel while most economic activities are halted.

Local public schools in Sri Lanka are already closed, and government officials are working from home, avoiding the use of public transportation. Roads in and around the capital Colombo are empty, and gas stations are similarly deserted, the report said.