With 40,000 metric tonnes of fuel from India, Sri Lanka seeks to reduce power cuts from 13 hours to 2 hours
Highlight
- Sri Lanka’s electricity generation mainly depends on fuel
- All plants except two have been closed due to shortage of diesel in Sri Lanka.
- Sri Lanka’s economy is suffering due to lack of transport of goods
In a relief to thousands of people queuing up at fuel stations across the country and those affected by 13-hour power cuts, 40,000 metric tonnes of diesel worth $500 million under the Indian Line of Credit arrived at Colombo port on Saturday (April 2).
As the shipment arrived, the Ceylon Electricity Board (CEB) announced that the 13-hour power cut would now be reduced from Sunday to about 2 hours.
Sri Lanka’s electricity generation mainly depends on the fuel and all but two plants have closed due to shortage of diesel. The country’s economy has been suffering for days due to lack of transportation of goods, while mechanized farming and fishing have come to a standstill due to no diesel in fuel stations.
The fourth consignment from India under the fuel line of credit came after three previous deliveries on March 16, 20 and 23. In the last 50 days, India has supplied around 200,000 MT to Sri Lanka, including a consignment of 40,000 MT by Indian Oil Corporation off line. Loan facility in February 2022.
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“Given the urgent nature of Sri Lanka’s requirement, India worked overtime to both expeditiously finalize and implement the Line of Credit,” the Indian High Commission said.
Indian High Commissioner Gopal Baglay, who visited Colombo port, said the fuel delivery is a concrete expression of India’s commitment to the people of Sri Lanka, in line with its ‘neighbourhood first’ policy under the current circumstances.
Sri Lanka’s Energy Minister Gamini Lokuge, who visited the port to welcome the shipment, thanked India for helping at a crucial moment.
Earlier, the Export Import Bank of India and the Sri Lankan government had signed a $500 million loan agreement on February 2 for the purchase of petroleum products.
On behalf of Sri Lanka, Treasury Secretary S.R. Ettigale and Gaurav Bhandari, Chief General Manager, EXIM Bank, signed on behalf of the Indian side.
“In response to a separate and urgent request from the Government of Sri Lanka, the extension of a $1 billion line of credit for the supply of essential commodities including food and medicines has been finalized and the first consignment of rice is expected to come under this facility. Indian High Commission in Colombo said, “Soon to reach Sri Lanka.”
Earlier in January this year, India provided financial assistance to Sri Lanka which included a credit swap of $400 million and deferment of Asian Clearing Union payments of over $515 million. The High Commission said that cumulatively, Indian support to the people of Sri Lanka in the first quarter of 2022 exceeds $2.5 billion.
The High Commission also noted that the Government of India continues to encourage efforts towards medium to long-term capacity building through increased Indian investments in Sri Lanka in key sectors such as ports, renewable energy, manufacturing, etc.
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