Sri Lankan President Gotabaya Rajapaksa has asked his Russian counterpart Vladimir Putin for assistance in purchasing fuel for the island nation, which is experiencing its worst economic crisis since gaining independence in 1948.
Sri Lanka’s president says he has asked Russia’s Vladimir Putin for assistance in importing fuel as the country faces its worst economic crisis since its independence from Britain in 1948.
Mr Putin and Gotabaya Rajapaksa had a “very productive” discussion, according to Mr Rajapaksa.It comes after Sri Lanka’s energy minister warned over the weekend that the country might run out of gasoline soon.Hundreds of people took to the streets of Colombo on Wednesday to protest the government.
“I requested an offer of credit support to import fuel,” Mr Rajapaksa tweeted, referring to his conversation with Russian President Vladimir Putin.
Mr Rajapaksa also stated that he had “humbly requested” that flights between Moscow and Colombo resume after Russian flag carrier Aeroflot suspended services last month.
The country has already purchased oil from Russia in recent months to help supplement fuel supplies during the crisis, and the government has indicated a willingness to purchase more from the energy-rich country.
Mr Rajapaksa’s efforts to resolve Sri Lanka’s worst economic crisis in more than 70 years, including securing financial assistance from India and China, have so far failed to end weeks of fuel, power, food, and other essential items shortages.
Kanchana Wijesekera, the energy minister, said on Sunday that the country only had enough petrol for less than a day under normal demand.In an effort to preserve its dwindling fuel stocks, authorities suspended sales of gasoline and diesel for non-essential vehicles last week.
Sri Lanka desperately needs Russian President Vladimir Putin’s assistance with both fuel and tourists, both of which are critical to the country’s economic recovery.The island nation is nearly out of fuel, which has crippled businesses and public transportation.
Due to a lack of foreign currency, as well as banking and logistical difficulties, it is having difficulty obtaining oil shipments from its usual suppliers in the Gulf or elsewhere.
In response to Russia’s invasion of Ukraine, Western nations have imposed sanctions on Russian oil. President Gotabaya Rajapaksa, on the other hand, appears willing to risk infuriating Western capitals.
To make matters worse for Colombo, Aeroflot suspended Moscow-Colombo passenger flights last month after a Sri Lankan court temporarily detained one of its planes due to a commercial dispute over payment.
Russians accounted for nearly a fifth of total tourist arrivals in Ukraine in the months preceding the outbreak of the conflict.
Even if flights resume, it may be difficult to attract Russian tourists because they may find it difficult to pay for things while on vacation.In response to Moscow’s war on Ukraine, several Russian banks have been barred from using the SWIFT international payment system, and Visa and MasterCard have suspended Russian operations.
Sri Lanka’s foreign exchange reserves have shrunk as a result of economic mismanagement and the pandemic’s impact.As a result, it has struggled to pay for essential imports such as fuel, food, and medicine.
It went into debt default for the first time in its history in May, when a 30-day grace period to pay $78 million (£63 million) in unpaid debt interest payments expired.The country is currently negotiating a £3 billion bailout with the International Monetary Fund (IMF).Sri Lanka’s government has stated that it requires $5 billion in international assistance this year, including from the IMF.