Sri Lanka puts restrictions on fuel import for the next 12 months

Sri Lanka has decided to restrict fuel imports for the next 12 months due to the severe foreign exchange shortage, as its energy minister reported on July 25. The island nation’s new government is trying to find a way out to stabilize the current economic crisis in the country.

The country has a population of 22 million people and has been now struggling with a lack of essentials, including medicines and fuel, for months after its foreign exchange reserves went dry because of the mismanagement of the economy of the country and the impact of the COVID-19 pandemic.

Sri Lanka’s Power and Energy Minister, Kanchana Wijesekera, posted in a tweet,” Due to Forex issues, Fuel imports have to be restricted in the next 12 months.”

The rationing system is one of the first steps that Sri Lanka’s newly elected President Ranil Wickremesinghe will take responsibility to ease the current situation of the crisis after taking over the office following a victory in a parliament vote last week.

His predecessor, Gotabaya Rajapaksa, fled from the country and resigned earlier this month after seeing the huge protests against him for mishandling the country’s economy, with protesters storming over his official residence and office.

Sri Lanka’s Lanka Indian Oil Corporation is the country’s second-largest fuel retailer, which will import two fuel shipments of around thirty thousand tonnes each in August. Manoj Gupta, the company’s managing director, reported, “We are working collectively with the government to reduce the pain, and our priority is to supply to industries.”