Sri Lanka has decided to purchase petrol and diesel, 40,000 metric tonnes each, from the Indian Oil Corporation (IOC), as part of the government’s bid to tide over the current fuel and energy crisis faced by the island nation.
The move came weeks after Power Minister Gamini Lokuge said that Sri Lanka will hold talks with the Indian Oil Corporation’s local entity, the Lanka IOC,
the Sri Lankan subsidiary of India’s oil amidst a severe foreign exchange crisis.
Major Indian Oil Corporation, has been in operation in Sri Lanka since 2002.
As per the Cabinet statement, the Ministry of Energy has discussed with the IOC to procure 40,000 metric tonnes of diesel and 40,000 metric tonnes of petrol.
Accordingly, the Indian Oil Corporation has agreed to supply a shipment of 40,000 metric tonnes of diesel, it said.
Energy Minister Udaya Gammanpila had predicted fuel shortages in the country due to the inability to pay for imports.
Sri Lanka is currently facing a severe foreign exchange crisis with falling reserves and the country is grappling with a shortage of almost all essentials, due to the lack of dollars to pay for the imports. Additionally, power cuts are imposed at peak hours as the state power entity is unable to obtain fuel to run turbines.
