PM gives fresh assurances on fuel and gas supplies and resolving other economic issues

• Reiterates next three weeks will be most difficult but assures more fuel and gas stocks expected to ease-off shortages
• Supplies will only meet 50% of general demand
• Calls for patience from the public

Prime Minister Ranil Wickremesinghe

Prime Minister Ranil Wickremesinghe gave an update on the fuel and gas situation in the country and reiterated that the next three weeks will be the most difficult.

“As I said earlier, these three weeks will be the most difficult for us to get adequate stocks of fuel and gas. This is evident from the long queues of people waiting for fuel and gas.,” Wickremesinghe said in a statement.

He said a gas shipment carrying 3,500 metric tons has arrived in Sri Lanka. However, the stocks will be mainly for bulk purchasers including hospitals, hotels, crematoriums, etc.

However, with the next shipment, the authorities hope to secure adequate stocks for a period of four months. “It will take us another 14 days to access that shipment. We are holding discussions in this regard to expedite the process,” he said.

The Prime Minister said the Government will ensure there is a continuous supply of fuel after the end of the three weeks period of the stocks available will meet only 50% of the current demand. “With the available stocks we will give priority to electricity generation, transportation, and other essential services,” he said.

He added that the existing stocks will last for another seven days and that a shipment of 40,000 metric tons of fuel will reach Sri Lanka by the 16 June while another shipload of petrol and diesel too have been obtained by the Government.

He said this will be adequate for the requirement of fuel for this month. ”Once the new Credit Line is signed with India, we will have adequate stocks for four months to meet 50% of the demand in the country,” Wickremesinghe said. 

He said that on 7 June he spoke to the IMF Managing Director and was assured she will take measures to expedite the request. “A delegation from the IMF will come to Sri Lanka on the 20 June,” Wickremesinghe added. 

The Prime Minister also detailed various on-going efforts to garner more bilateral support from development partners such as India, China, Japan, US and Europe. 

Following is the Prime Minister’s statement:

The hardest three weeks regarding the fuel have arrived. This is especially evident in the queues for gas and fuel. At present one ship carrying gas has arrived.

 The ship is carrying 3,500 metric tons of gas. This gas will be distributed wholesale, especially to groups such as hospitals, hotels and crematoriums. Later we will get sufficient consignments of gas for four months. It will take 14 days to secure these stocks. However we hope to get some more shipments sooner, at least one ship to Sri Lanka.

We decided to supply fuel uninterrupted. But only 50 percent of current demand can be sustained. Also priority will be given to power generation, transportation and many other essential services.

"We have enough fuel for seven days at the moment. However, on the 16th of this month a ship carrying 40,000 metric tons of diesel will arrive in the island. There are also two other fuel tankers. A petrol tanker and a diesel tanker have been procured. As of now, we have procured fuel tankers until the end of this month.

We have also acquired two fuel tankers for next month. After that, according to the new agreement signed with India, the required fuel can be obtained for 4 months. But it will be possible to supply only 50% of the demand.

We had a foreign currency problem while getting fuel. While talking about that problem a state bank did not have rupees. Then I got the cabinet approval to print the money. This is the reason why a new tax was imposed. There are also several other taxes to be imposed.

Sri Lanka is facing a Rupee shortage as well apart from the dollar crunch. Necessary steps will be taken to eliminate the rupee deficit by the end of this year.

I have already spoken to The International Monetary Fund (IMF) Managing Director who assured me to expedite the assistance. The IMF is expected to assist us in eliminating the problem of foreign reserves. I have also spoken to the World Food Program. In addition, US President Joe Biden has assured the Sri Lankan Ambassador in Washington of his assistance. World is looking at us and ready to help us.

However, we have to help ourselves first. Therefore it is essential to have a debt restructuring program in place as soon as possible.