Bankrupt Sri Lanka rations fuel as crisis worsens

Cash-strapped Sri Lanka inserts  fuel rationing  in  worsening of the economic downfall that has glowed widespread demonstrations calling for resignation of President on Friday

State-run Ceylon Petroleum Corporation (CPC), which accounts for more than a half of the retail fuel market, said it might limit the ratio drivers can buy, and banned pumping into cans gathers to prevent motorists stocking up on fuel  in fear of further rationing.

The high for motorcycles was set at four liters of petrol, and three-wheelers are allowed five liters, the CPC said. personal  cars, vans and SUVs are  allowed up to 19.5 liters of fuel .

Most pumping stations were already out of petrol, while the few that remained open saw long queues. At least eight people have died while waiting in fuel lines since last month.

Energy ministry officials said they expected the country’s other fuel retailer, Lanka IOC — the local unit of Indian Oil Corporation — to follow suit.

There was no immediate comment from the Lanka IOC, which accounts for the remaining one third of the market.

The island nation is in the grip of its worst economic crisis since independence in 1948, with severe shortages of essential goods and regular blackouts causing widespread misery.

The country’s main cooking gas retailer Litro Gas said it was completely out of stock, but hoped to get new supplies by Monday to resume distribution.

The state-owned firm said its chairman, Theshara Jayasinghe, a strong ally of Rajapaksa, had resigned on Thursday over the “prevailing situation” in the country.

Tens of thousands of people kept up a protest outside Rajapaksa’s office for a seventh straight day Friday demanding he quit over the economic hardships suffered by the country’s 22 million residents.

Sri Lanka’s economic meltdown began after the coronavirus pandemic torpedoed vital revenue from tourism and remittances.

The officials urged citizens  to donate  for foreign exchange to help pay for desperately needed goods after the  announcement  of a default on its total external debt.

It has said  that it can help to negotiate with the International Monetary Fund to seek a bailout.