No money for fuel in Sri Lanka

Rating agencies are anticipated to downgrade Sri Lanka on Wednesday as a result of the nonpayment of coupons on two of the country’s sovereign bonds, while the energy minister said the country has run out of money to pay for fuel.

An unprecedented economic crisis since the country’s 1948 independence has resulted in a serious lack of foreign money, causing it to miss two coupon payments on national bonds on April 18.

Sri Lanka has previously stated that it will be unable to pay the coupons, and a 30-day grace period will expire on Wednesday.

According to S&P, the bonds’ ratings have already been lowered to ‘default,’ and the country’s total rating might be lowered even further.

Power and Energy Minister Kanchana Wijesekera warned parliament that the country does not have enough funds to pay for petrol supplies for the next two days.

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He noted that a petrol shipment has remained at Colombo port since March 28 but that the government has been unable to pay.

He explained that “there aren’t enough money available to open letters of credit.”

“We’re trying to raise finances, but gasoline won’t be accessible until at least the weekend.” “The very little reserve stock of gasoline is being issued for necessary services such as ambulances,” he explained.

Prime Minister Ranil Wickremesinghe announced on Wednesday that the country had acquired $160 million in World Bank bridge funding, but it remained unclear whether the funds could be used.

He explained, “The statistics have gone haywire.” “However, the truth is that we don’t even have $1 million.”

Sri Lanka’s severe economic position, exacerbated by the pandemic, rising oil prices, and populist tax cuts, has resulted in spiralling inflation and shortages of vital commodities, drawing tens of thousands to the streets in protest.

Last week, violence between pro- and anti-government factions and police left nine people dead and over 300 injured, prompting former Prime Minister Mahinda Rajapaksa to resign.