Streets go dark in Sri Lanka as economic crisis deepens

COLOMBO • Sri Lanka is turning off its street lights to save electricity, a minister said yesterday, as the country's worst economic crisis in decades brought record-long power blackouts.

The island nation of 22 million people is struggling with rolling power cuts for up to 13 hours a day as the government is unable to make payments for fuel and other essential imports because of a lack of foreign exchange.

"We have already instructed officials to shut off street lights around the country to help conserve power," said Power Minister Pavithra Wanniarachchi.

A diesel shipment under a US$500 million (S$677 million) credit line from neighbouring India is expected to arrive tomorrow, Ms Wanniarachchi said, but she warned that the situation was not likely to improve any time soon.

"Once that arrives we will be able to reduce load shedding hours but until we receive rain, probably some time in May, power cuts will have to continue," the minister told reporters, referring to the rolling power cuts. "There's nothing else we can do."

Water levels at reservoirs feeding hydro-electric projects had fallen to record lows, while demand had also hit record levels during the hot, dry season, she said.

Diesel - the main fuel for buses and commercial vehicles - was no longer on sale across the country yesterday. Petrol was on sale but in short supply, forcing motorists to abandon their cars.

"We are siphoning off fuel from buses that are in the garage for repairs and using that diesel to operate serviceable vehicles," said Transport Minister Dilum Amunugama.

Owners of private buses - which account for two-thirds of the country's fleet - said they were out of oil and that even skeleton services may not be possible after today.

The state electricity monopoly said it was forced to enforce a 13-hour power cut from yesterday - the longest ever - because it did not have diesel for generators.

"We are promised new supplies in two days and if that happens, we can reduce the length of power cuts," said the chairman of Ceylon Electricity Board.

The shortages have sparked outrage across Sri Lanka, with local television reporting protests as hundreds of motorists block main roads in several towns.

Several state-run hospitals have stopped operations as they have no essential life-saving medicines.

Colombo imposed a broad import ban in March 2020 in a bid to save foreign currency needed to service its US$51 billion foreign debt. But this has led to widespread shortages of essential goods and sharp price rises.

The government said it is seeking a bailout from the International Monetary Fund while also asking for more loans from India and China.

Sri Lanka has, meanwhile, bought coal from the Singapore unit of Russian coal trader SUEK and will pay in US dollars, two senior officials said.

The coal shipments will be the first from Russia to Sri Lanka after the Feb 24 invasion of Ukraine by the Russians. Details about the deal were not previously reported.

Some international traders have been staying away from Russian oil to avoid becoming entangled in sanctions on Moscow after the invasion, but Russia has been pushing its commodities to countries including India at steep discounts.

A top Sri Lankan official told Reuters two cargoes of 60,000 tonnes of coal each sent by SUEK were on their way to Sri Lanka from Russia, adding that the shipments were expected to arrive in the second week of April.

AGENCE FRANCE-PRESSE, REUTERS