ECONOMYNEXT – Sri Lanka has received a shipment of 40,000 tons of diesel under a $500 million Indian credit line to be distributed from Saturday, a government official has said.
There are long lines of vehicles at gas stations sometimes parked overnight without drivers waiting for the next diesel delivery.
“Distribution is expected to start from tonight,” the CPC source said.
The ships arrive as Sri Lanka was placed under a 36-hour curfew ahead of social media-led protests scheduled for Sunday.
Sri Lanka faces severe foreign exchange shortages and high inflation due to the island’s intermediate central bank regime that prints money over two years under a “flexible” policy.
Sri Lanka has experienced 72 years of currency problems, social unrest and emigration due to currency depreciation from the central bank.
Depreciation has sometimes come intentionally from the mercantilists of the island who believe that there is prosperity at the end of monetary debasement.
The state-run Ceylon Electricity Board said on Thursday that the duration of power outages could be reduced from 10 to 13 hours currently as shipments from India begin to arrive. (Colombo/April 2, 2022)