ECONOMYNEXT – Sri Lanka is likely to start receiving fuel shipments from India under a 500 million US dollars before end of this month the whole process has been fast tracked due to the island nation’s ongoing fuel shortage, official sources said.

Sri Lanka’s fuel shortage has resulted in an unprecedented over 7 hour power cut daily and long queues at fuel stations across the country as the country failed to purchase fuel due to forex crisis.

Sri Lanka originally expected to get under a 500 million US dollar fuel under the credit line in the first week of April.

“We are likely to receive Indian oil parcels as soon as this month as they are fast tracking the process,” an energy ministry official told EconomyNext.

Government Ministers have claimed that power cuts can be ended from March 05, after a furance oil ship with 30,000 metric tonnes arrives.

However Ceylon Electricity Board officials have said power cuts can be reduced but not eliminated even if all thermal plants are run since hydro storage is depleted.

“We have now floated tender to buy Indian fuel. The tender includes diesel, petrol, and aviation fuel. What we know is they (India) is expediting the process now,” the energy ministry official said.

Indian Oil Corporation was quoted as saying in Indian media that it will supply 12 to 13 shipments of diesel, petrol and jet fuel to Sri Lanka over the next 4-5 months.

An Indian official who is aware of the ongoing discussion between the both countries over the fuel credit line confirmed the fast tracking process.

“The shipments will come before April first week,” he said. (Colombo/March04/2022)