Accessibility links

Breaking News

Sri Lanka Sends Troops to Fuel Stations, Aims to Restructure Debt


Sri Lanka's Army members stand guard at a Ceylon Petroleum Corporation fuel station to help stations distribute oil during the fuel crisis, in Colombo, Sri Lanka, March 22, 2022.
Sri Lanka's Army members stand guard at a Ceylon Petroleum Corporation fuel station to help stations distribute oil during the fuel crisis, in Colombo, Sri Lanka, March 22, 2022.

Sri Lanka posted soldiers at hundreds of state-run gas stations on Tuesday to help distribute fuel after a sudden rise in prices of key commodities and accompanying shortages forced tens of thousands of people to queue for hours.

The Indian Ocean nation is battling a foreign exchange crisis that forced a currency devaluation and hit payments for essential imports such as food, medicine and fuel, prompting it to turn to the International Monetary Fund (IMF) for help.

"The government has to provide solutions," said Seetha Gunasekera, 36, who lives with her husband and two children in Colombo, the capital.

"There is too much hardship and suffering," she said, adding she was spending more time in fuel queues than doing anything else. "Prices of everything have increased and we are barely able to manage with what we earn daily."

People stand in a long queue to buy kerosene oil for kerosene cookers amid a shortage of domestic gas due to country's economic crisis, at a fuel station in Colombo, Sri Lanka, March 21, 2022.
People stand in a long queue to buy kerosene oil for kerosene cookers amid a shortage of domestic gas due to country's economic crisis, at a fuel station in Colombo, Sri Lanka, March 21, 2022.

The decision to deploy troops near petrol pumps and kerosene supply points came after three elderly people died during their wait in long lines, officials said.

It was a response to complaints of stockpiling and inefficient distribution, government spokesman Ramesh Pathirana said.

"The military has been deployed to help the public, not to curtail their human rights," he added.

Military spokesman Nilantha Premaratne told Reuters at least two army personnel would be stationed at every fuel pump to help organize fuel distribution, but the soldiers would not be involved in crowd control.

A soldier guards a fuel station in Colombo, Sri Lanka, March 22, 2022.
A soldier guards a fuel station in Colombo, Sri Lanka, March 22, 2022.

Tension over the scarcity of supplies has fed sporadic violence among those scrambling to buy fuel and other essential items.

Police said a man was stabbed to death on Monday in an argument with the driver of a three-wheeled vehicle, while last week three elderly men died while in line for fuel in sweltering heat.

The rapid drain of Sri Lanka's dollars has left it struggling to pay for critical imports as currency reserves have slumped 70% in the last two years to $2.31 billion.

But Sri Lanka has to repay about $4 billion in debt this year, including a $1 billion international sovereign bond that matures in July.

Ahead of IMF talks in Washington in April, the government said it would hire a global law firm to provide technical assistance on debt restructuring to fight the crisis.

  • 16x9 Image

    Reuters

    Reuters is a news agency founded in 1851 and owned by the Thomson Reuters Corporation based in Toronto, Canada. One of the world's largest wire services, it provides financial news as well as international coverage in over 16 languages to more than 1000 newspapers and 750 broadcasters around the globe.

XS
SM
MD
LG