Lanka seeks new loans from India – Reuters

Colombo: The Sri Lankan cabinet has approved seeking a $500 million loan from the Exim Bank of India for the purchase of petroleum products amid a severe currency crisis in the island nation.

He had already received $500 million from the Exim Bank of India and another $200 million from the State Bank of India for oil purchases.

Crisis-hit Sri Lanka on Tuesday raised the price of petrol by 24.3% and diesel by 38.4%, a record rise in fuel prices amid the country’s worst economic crisis due shortage of foreign exchange reserves.

With the second fuel price hike since April 19, the most used Octane 92 petrol would now cost 420 rupees (1.17 USD) and diesel 400 rupees (1.11 USD) per litre, an all-time high.

The decision to raise the price of Octane 92 petrol by 24.3% or Rs 82 and diesel by 38.4% or Rs 111 per liter was taken by the state fuels entity, Ceylon Petroleum Corporation (CPC ).

Meanwhile, auto rickshaw operators have said they will raise the fare to Rs 90 for the first kilometer and Rs 80 for the second.

To mitigate costs, the government announced that headteachers would have the discretion to determine which employees would be required to physically report.

The others are allowed to work from home. Lanka IOC has been in operation in Sri Lanka since 2002. Sri Lanka has considered various options to facilitate measures to prevent fuel pumps from running dry, as the country faces a severe foreign exchange crisis to pay its imports.

The island nation is grappling with an unprecedented economic crisis, the worst since its independence from Britain in 1948.

It is struggling with a shortage of almost all basic necessities, due to lack of dollars to pay for imports.

A crippling shortage of foreign exchange reserves has led to long queues for fuel, cooking gas and other necessities, while power cuts and soaring food prices have deepened misery Population.

The economic crisis has also triggered a political crisis in Sri Lanka and a demand for the resignation of President Gotabaya Rajapaksa.

The crisis has already forced Prime Minister Mahinda Rajapaksa, the president’s older brother, to resign on May 9.

A 40% inflation rate, food, fuel and medicine shortages and power outages led to nationwide protests and a plummeting currency as the government ran out of foreign exchange reserves he needed to pay for imports.

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