Last shipments under Indian LoC to arrive in Lanka this month

Colombo: The last of the fuel shipments due under the Indian Line of Credit (LoC) are arriving in Sri Lanka this month with no indications on the sustenance of future supplies which are dependent on India's assistance.

Sri Lanka is going through the worst economic crisis since its independence from Britain in 1948. The economic crisis has prompted an acute shortage of essential items like food, medicine, cooking gas and other fuel, toilet paper and even matches, with Sri Lankans for months being forced to wait in lines lasting hours outside stores to buy fuel and cooking gas.

We are expecting the last diesel shipment under ILC (Indian Line of Credit) on June 16 and the last petrol shipment on June 22," energy minister Kanchana Wijesekara told reporters.

Sri Lanka's fuel purchases have been totally dependent on the ILC - a $500 million credit line initially which was supplemented with another $200 million later. The island has been experiencing long lines for fuel refilling since mid-February with pressure coming on the diesel supplies for thermal power generation.

By early April the island was experiencing 10-hour power cuts due to shortages of diesel and furnace oil for power generation. Wijesekara said the minimum daily requirement of diesel was 5,000 metric tonnes (MT) as people need it to run private generators due to the power cuts imposed.

We only issued between 2,800-3,000 MT on a priority basis last week," Wijesekara said adding that the full requirement of diesel per week is now being supplied.