In the island nation of Sri Lanka, the state energy company CPC has run out of money to buy and import oil. Energy Minister Udaya Gammanpila said in Colombo on Friday that the country previously lacked dollars to import oil and now lacks rupees to buy dollars. According to the information, the loss-making company accumulated losses of 83 billion rupees (a good 360 million euros) last year alone.
Energy Minister warns of nationwide bottlenecks
Among other things, the sales prices for diesel set by the government have a negative effect, said the minister. CPC suffered losses of 42 percent as a result. Even tax increases would not solve the problem, said the minister. He warned of bottlenecks – “unless we raise prices or the Ministry of Finance offers a rescue”.
The small country’s energy sector depends on imports to meet the needs of around 22 million people. Food prices have also risen sharply, with food prices rising by 25 percent over the past month. Income from the tourism industry has largely failed to materialize during the corona crisis.