Sri Lanka Economic Crisis: Fuel Prices Hiked Again, People Encouraged To Work From Home

Work from home will be encouraged to minimise the use of fuel and to manage the energy crisis in the island nation

New Delhi: In a big blow to the common man already reeling under severe economic crisis, Sri Lanka raised petrol prices by 20-24 per cent on Tuesday and diesel by 35-38 per cent. Power and energy minister Kanchana Wijesekera announced the hike in fuel prices according to the news agency Reuters. In a tweet, Wijesekera said the Cabinet has approved the revision in prices. "Work from home will be encouraged to minimise the use of fuel and to manage the energy crisis," he added.

While public sector employees will come to work on the direction of the head of the institute from Tuesday onwards.

(3) Public sector workforce will be called to work on the direction of the head of the institute from today. Work from home will be encouraged to minimize the use of fuel and to manage the energy crisis. pic.twitter.com/JVKrmSYnoc

— Kanchana Wijesekera (@kanchana_wij) May 23, 2022

On Saturday, India provided another 40,000 metric tonne of diesel to Sri Lanka under the credit line facility to the island nation which is grappling with its worst economic crisis.

In April, India extended an additional $500 million credit line to help Sri Lanka import fuel as the country has been struggling to pay for imports after its foreign exchange reserves plummeted sharply in recent times, causing a devaluation of its currency and spiralling inflation, according to PTI.

India's first consignment of a $16 million humanitarian aid package reached the island nation to mitigate severe shortages. Gopal Baglay, the Indian envoy to Sri Lanka, delivered the donation from Tamil Nadu to Sri Lanka’s Foreign Minister Gamini Peiris on Sunday.

The items delivered worth $5.6 million include rice, milk powder and essential medicines. They will be distributed among vulnerable families in different parts of the country, said the Indian Embassy .

Sri Lanka is almost on brink of bankruptcy and facing severe shortages of food, fuel, medicines and cooking gas to toilet paper and matchsticks.

Residents have been forced to stand in long queues to buy the limited stocks. Sri Lanka has suspended repayment of about $7 billion in foreign loans due this year out of the $25 billion to be repaid by 2026. The country’s total foreign debt is $51 billion.

Separately, India has provided a $3.5 billion economic assistance in the form of loans and buyers’ credit for food, medicine and fuel.