Sri Lanka slashes fuel prices in welcome relief amid crisis
Sri Lanka’s government has announced significant cuts in fuel prices, providing welcome relief for many after a year of shortages and skyrocketing prices amid the country’s worst economic crisis
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Sri Lanka’s government on Wednesday announced significant cuts in fuel prices, providing welcome relief for many after a year of shortages and skyrocketing prices amid the country’s worst economic crisis.
Minister of Power and Energy Kanchana Wijesekara told reporters different categories of petrol and diesel will be sold at prices from 8% to 26% lower starting Wednesday midnight. He said the price reduction is in line with an agreement with the International Monetary Fund, which includes adjusting fuel subsidies and prices based on production costs and global oil prices.
Sri Lanka earlier this month secured approval of a $2.9 billion IMF bailout program a key step in its recovery from a crisis brought on by the pandemic and other troubles. Last year, severe shortages of food, medicine and fuel led to street protests that forced then-President Gotabaya Rajapaksa to flee the country and resign.
In a related development, petroleum industry trade unions opposing a government decision to give licenses to three companies from the United States, Australia and China to run fuel stations in Sri Lanka were threatening to strike.
The unions are protesting a plan to partially privatize government-owned Ceylon Petroleum Corp., which now only faces competition from Indian Oil Corp. as competition.
People rushing to beat a possible strike lined up near fuel stations, fearing supply would run out. Wijesekara said even though the strike had caused some disruptions, the military was helping to ensure normal operations. Any shortages were due to dealers not ordering enough fuel because they were anticipating a price cut as part of a monthly revision in April.
The government plans to get out of business and privatize key semi-state-owned companies to raise revenue to build its reserves and resume payments of foreign debt.
Some opposition political parties and trade unions oppose the idea, contending that selling off state resources might compromise national interests.
Last year, Sri Lanka suspended repayment of about $7 billion of its foreign debt that was due in 2022. Sri Lanka's creditors have agreed to restructure its debt, in addition to the IMF bailout.
President Ranil Wickremesinghe has said that giving up the IMF program would compel cash-strapped Sri Lanka to repay $6 billion-$7 billion a year until 2029.
___
Find more AP Asia-Pacific news coverage at: https://apnews.com/hub/asia-pacific