• Sri Lanka raises fuel prices by 15% and 22%, worsening the plight of ordinary people.
• US officials arrive in Colombo for talks to try to resolve the economic crisis.
• The government declared bankruptcy in April after failing to pay its $51 billion in foreign debt.

Sri Lanka hikes fuel prices, aggravating the misery of ordinary people as US officials gathered for economic talks.

Ceylon Petroleum Corporation (CPC) increased diesel by 15% to 460 rupees ($1.27) per litre and gasoline by 22% to 550 rupees ($1.52).

The announcement came a day after Energy Minister Kanchana Wijesekera said there would be an indefinite delay in getting new shipments of oil.

Read More: Senior U.S. Officials Visit Sri Lanka to Assist in Crisis Resolution

Wijesekera claimed oil shipments due last week and next week won’t arrive owing to “banking” issues.

Wijesekera apologised to drivers and encouraged them not to wait in long lines. Many have waited in lines to refuel when supplies return.

Sources from the government said that the island still had enough fuel for about two days, but that it was being saved for essential services.

The US assesses the crisis

A delegation from the US Treasury and the State Department arrived for talks to “explore the most effective ways for the US to support Sri Lankans in need,” the US embassy in Colombo said.

In a statement, US ambassador Julie Chung said, “Sri Lankans are facing some of the biggest economic problems in their history. Our work to support economic growth and strengthen democratic institutions has never been more important.”

The embassy said it had committed $158.75 million in new financing in the past two weeks to help Sri Lankans.

The UN has already sent out an urgent call to raise $47 million to feed the most vulnerable of the 22 million people who live on the island.

Four out of five individuals have reduced their food intake due to severe shortages and soaring prices, according to the UN.

Because of the energy crisis, the government closed non-essential state institutions and schools for two weeks to reduce commuting.

Due to the lack of fuel, the number of the medical staff at several hospitals across the country dropped sharply.

Prime Minister Ranil Wickremesinghe warned parliament on Wednesday that more hardships were on the way.

Read More: Bankrupt Sri Lanka seeks discounted Russian oil

“Our economy has faced a complete collapse,” Wickremesinghe said. “We are now facing a far more serious situation beyond the mere shortages of fuel, gas, electricity, and food.”

The government declared bankruptcy in April after failing to pay its $51 billion in foreign debt. It is now negotiating a possible rescue with the International Monetary Fund.