Sri Lankan energy crisis, primarily caused by the severe foreign exchange shortage, has reached a dangerous level this week as the country struggles to manage multiple interlinked crises, forcing authorities to ration both electricity and fuel. The country is left with fuel stocks enough for just a few days. 

On Wednesday, the government announced implementing ten-hour power cuts daily and restricted fuel selling to not more than Rs 3000 (roughly $14 ) per vehicle. This came the country’s foreign reserve exchange remains at a critical level for months. 

Despite the severity of the crisis, the government seems unable to find an alternative for a short-term plan to avoid a total blackout. Power plants, most of which rely on diesel, are left with only a few days of fuel to operate. 

Importers are struggling to import gas and fuel as banks are unable to provide letters of credit, reported Daily Mirror. However, Finance Minister Basil Rajapaksa had recently assured the country earlier this week that the fuel crisis would be addressed by Saturday, without giving details. 

Furthermore, cracks within the government over the unfolding crisis have already started emerging as Vimal Weerawansha, the country’s energy minister, hit out at finance minister Basil Rajapaksa for his ignorance of the crisis. 

“The ignorance of the Finance Minister could either be attributed to his stupidity or he deliberately wanted the crisis to be advanced to a disaster,” Weerawansa was quoted as saying by Daily Mirror. 

He also accused Basil Rajapaksa - part of the ruling Rajapaksa clan - of not heeding experts’ advice. 

“You cannot solve every issue with an egoistic attitude….The Central Bank Governor said he had sent nine letters within the past six months outlining economic measures that should be taken to avoid a crisis. However, the Finance Minister had not even acknowledged them or had time for a meeting with the Central Bank Governor to discuss them,” 
 
The power crisis comes at a time when countries around the world are looking at post-pandemic recovery. Sri Lanka’s tourism industry, one of the biggest forex earners, which was most affected by the pandemic, had just about started recovery. Now the $4 billion industry is being threatened by the power crisis. 

(SAM)