Sri Lanka might run out of fuel by the 3rd week of January stated the country’s Energy Minister. India is ready to support Sri Lanka in these difficult times.
Udaya Gammanpilla, Sri Lanka’s energy minister. On Friday, highlighted that the country might face a fuel shortage by the third week of January. He requested the Central Bank for its assistance to Sri Lanka to provide the nation with funds for imports.
He further warned the citizens to be prepared for power cuts in the upcoming days as the country is financially unstable to purchase fuel.
On Tuesday, the government of Sri Lanka had announced an economic relief package worth USD 1.2 billion to help with the nation’s financial crisis.
Gammanpilla said, “I have taken up this issue with the cabinet and told them eight times now to ensure that a part of dollar inflows is reserved for oil and medicines imports.”
9% oil is required for electricity generation, however, a CEB official said that the company couldn’t afford to buy oil from Ceylon Petroleum Corporation. He also stated, “The CEB was having to rely on its coal- and hydro-powered generating facilities and was applying rotating one-hour power cuts around the island.”
Power Cuts to Take Place
On Friday, CEB stated that various locations in Sri Lanka will witness scattered power cuts in the evening between 5:30 pm to 9:30 pm. CEB said that this is being done as furnace oil wasn’t provided to it.
Earlier that day, Engineer’s Union at CEB stated that it was forced to shut down its power plants at various sites as the nation is facing a power crisis. Sapugaskanda Oil Refinery and the Barge power plants are temporarily shut down.
He said Joint Secretary of the Union Dhammika Wimalaratne. He also said that if these power plants won’t resume their workings soon. Then CEB would not be able to fulfill the country’s power demand.
Other than power cuts, Sri Lanka’s financial crunch has resulted in a controlled supply of milk powder, gas, sugar, and cement.
India’s is Ready to Assist Sri Lanka
On Thursday, Sri Lanka signed an agreement with India Corp and Lanka IOC to lease 75 oil tanks and purchased a $500 million fuel credit for India.
As per the agreement, Lanka IOC will have access to 14 tanks for 50 years. As per its joint venture with Ceylon Petroleum Corporation (CPC). 61 oil farms will be emerged by Trinco Petroleum Terminal. The remaining tanks would be used by CPC.
In an official statement, Sri Lanka’s Energy Minister stated, “This agreement will nullify the lease agreement entered into by the two countries in 2003. It brings the tank farm under a new governance structure.”
After a telephonic conversation with Sri Lankan officials, S Jaishankar, External Affairs Minister said that India will support Sri Lanka in these difficult times.
He took to his Twitter handle and wrote, “Greeted FM G.L. Peiris of Sri Lanka in the New Year. A reliable friend, India will support Sri Lanka in these difficult times. Agreed to remain in close touch.”
Arindam Bagchi, External Affairs Ministry’s Spokesperson, said that this agreement will boost bilateral energy cooperation.
He further stated that India is in conversation with Sri Lanka for the advancement of Trincomalee tank farms. This would help to tackle energy shortages. It will also extend bilateral energy security which is an important area of bilateral cooperation.
Before this agreement, Sri Lanka was using 15 out of 99 storage tanks situated in the eastern port of Trincomalee.
Published By: Khushboo Mehta
Edited By: Mahi Gupta
