Sri Lanka sends 2 ministers to Russia for oil amid crisis

COLOMBO (Sri Lanka) –

Two ministers from Sri Lanka are going to Russia to discuss fuel, a necessity that is almost out of reach in the face of the economic collapse in the Indian Ocean island nation.

This is a development that Washington and its allies are trying to stop energy imports form Russia due to sanctions imposed on the country for its war against Ukraine. The oil prices have soared since February’s invasion, prompting many countries to look for Russian crude at a steep discount.

Kanchana Wijesekera, Power and Energy Minister saidTwo ministers are set to depart Monday for Russia to continue talks between Sri Lankan authorities and Russia regarding direct fuel purchase.

He advised people not to queue up for fuel Saturday, saying that only limited stock would be distributed to stations next week. He said”Public transport, power generators, and industries” will be prioritized until the next shipment arrives.

Residents had to wait hours or even days to get fuel. Sometimes they used palm fronds or charcoal to cook.

Wijesekera’s remarks were made while a high-ranking U.S. delegation is in Sri Lanka to seek ways to assist the island nation with its unprecedented economic crisis and severe shortages.

Sri Lanka, like other South Asian countries, has remained neutral in the face of the war in Europe.

However, Wijesekera saidThe Russian ambassador to Sri Lanka and the foreign ministry have been making arrangements for a fuel sales.

“It would be a benefit for us if oil could be purchased directly from the Russian government and Russian companies. Reporters were told Sunday that there are talks.

Protests against government have resulted in fuel shortages, and recently, protestors attempting to demand fuel. The government has deployed armed police and troops at every fuel station.

Sri Lanka claims it is unable to repay $7Billion in foreign debt due this fiscal year. This is pending the outcome negotiations with the International Monetary Fund regarding a rescue package. It must pay $5Bn annually on average until 2026. The IMF has been asked by authorities to organize a conference to unify Sri Lanka’s lenders.

Last month, the country purchased a 90,000.ton (99,000-ton), shipment Russian crude oil to restart its only refinery Wijesekera said.

Prime Minister Ranil Wijesinghe spoke with The Associated Press in June. saidSri Lanka would have to buy oil from Russia. It was also trying to get oil or coal from Middle East traditional suppliers.

“If we can get any other sources, then we will get from there.” He said that if we don’t get from Russia, we might have to go back to Russia. said.

Wickremesinghe saidLast week, the $700 million debt of the Ceylon Petroleum Corporation (state-run Ceylon Petroleum Corporation) was revealed. No country or organization was willing and able to supply fuel.

The corporation increased petrol prices by 22%, to 550 Sri Lankan Rubles per liter (about $5.80/gallon), and diesel prices by 15%, to LKR 470/liter (4.95/gallon). Wijeserekara saidThe global fuel prices were equalized by the hike.

Protesters have been occupying the entrance to President Gotabaya Rajapaksa’s office for over two months demanding his resignation. They claim that he and his family are responsible for the crisis, and accuse him of corruption and mismanagement.

The U.S. delegation, led by Robert Kaproth (deputy assistant secretary of Treasury for Asia) and Kelly Keiderling (deputy assistant secretary for South and Central Asia), began their visit Sunday. They will meet with top officials in Sri Lanka during their stay, which is expected to last until Wednesday.