Sri Lanka hiked fuel prices on Sunday, inflicting further pain on ordinary people, as officials from the United States arrived for talks aimed at easing the island’s dire economic crisis.
Ceylon Petroleum Corporation (CPC) said it has increased the price of diesel, which is widely used on public transport, by 15 percent to 460 rupees (US$1.27) per liter, while raising the price of petrol22 percent to 550 rupees ($1.52).
The announcement came a day after Energy Minister Kanchana Wijesekera said there would be an indefinite delay in new oil shipments.
Wijesekera said oil that was due last week had not turned up, while shipments due to arrive next week would also not reach Sri Lanka for “bank” reasons.
Wijesekera apologized to motorists and asked them not to stand in long queues at pumping stations. Many have left their vehicles in queues hoping to be replenished when supplies are restored.
Official sources said the island’s remaining fuel supply lasted about two days, but that authorities were saving it for essential services.
– USA rate crisis –
A delegation from the US Treasury and State Departments arrived for talks to “explore the most effective ways for the US to assist Sri Lankans in need,” the US Embassy in Colombo said.
“As the people of Sri Lanka face some of the greatest economic challenges in their history, our efforts to support economic growth and strengthen democratic institutions have never been more critical,” US Ambassador Julie Chung said in a statement.
The embassy said it had allocated $158.75 million in new funding over the past two weeks to help the people of Sri Lanka.
The UN has already issued an emergency appeal to raise $47 million to feed the most vulnerable sections of the island’s 22 million people.
About 1.7 million residents need “lifesaving assistance,” according to the UN, with four in five people reducing their food intake due to severe shortages and soaring prices.
Last week, due to the energy crisis, the government closed non-essential state facilities and schools for two weeks to reduce commuting.
Several hospitals across the country reported a sharp drop in medical staff attendance due to fuel shortages.
Prime Minister Ranil Wickremesinghe warned Parliament on Wednesday that further hardship was on the horizon.
“Our economy was about to collapse completely,” Wickremesinghe said. “We are now facing a far more serious situation that goes beyond the mere shortage of fuel, gas, electricity and food.”
The government failed to repay its $51 billion in foreign debt, declared default in April and is negotiating a possible bailout with the International Monetary Fund.
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