Colombo: The Sri Lankan government on Saturday said that it was continuing efforts to secure a $ 500 million loan from India to ensure fuel supply amid severe foreign exchange crises in the island country.
“The proposal has been sent to the treasury for approval and will be submitted to the cabinet afterwards,” said Energy Minister Udaya Gammanpila.
He said the cabinet had given a sanction of a $ 3.6 billion loan from Oman to purchase fuel.
Gammanpila shows that fuel supply continues.
It can only be guaranteed until January next year because the island faces a higher global crisis and global prices.
The long queue was seen in fuel pumps since Thursday because of speculation that retail prices will be carried out by the state fuel company.
Lanka IOC (LIOC), a subsidiary of Indian Oil Corporation in Sri Lanka, has climbed retail prices from gasoline and diesel by Rs 5 per liter.
New prices are effective from midnight Thursday after the increase in global oil prices.
Ceylon managed by the Petroleum Corporation state has asked the government to allow price increases in their losses.
Gammanpila ruled out price revisions for now.
He also blamed the opposition to spreadin G rumor a shortage of fuel that will come in this country.
The price increase in global oil prices has forced Sri Lanka to spend more for oil imports this year.
The country’s oil bill has surged 41.5 percent to $ 2 billion in the first seven months of this year compared to last year.
Sri Lanka faced a severe foreign exchange crisis after a pandemic regarding the income of the nation from tourism and money transfer, Finance Minister Basil Rajapaksa said last month.
The country’s gross domestic product was contracted by a 3.6 percent record by 2020 and its foreign exchange reserves scheduled in one year to only $ 2.8 billion in July.
This has caused a 9 percent depreciation of the Sri Lankan rupee against the dollar over the past year making import more expensive.