Colombo, Feb 23 (BNA): Authorities in Sri Lanka are imposing renewed blackouts across the island nation as its deepening financial crisis leads to fuel shortages and disrupts the power grid.
Sri Lanka’s Public Utilities Commission said it will shut down the country’s electricity grid for four and a half hours on Wednesday after two hours of blackouts on Tuesday and Monday. According to officials, electricity will be cut off alternately between regions between 8:30 a.m. and 10:30 p.m.
The regulator said the state-owned Ceylon Electricity Board had requested permission for the cuts because the fuel shortage had caused a loss of about 700 megawatts from the national grid. Over the past few weeks, Sri Lankans have experienced several sporadic blackouts.
“Lack of fuel is causing this problem,” said commission chairman Janaka Ratnayake, adding that “we have a fuel crisis, not an electricity crisis.”
The depletion of foreign reserves is leading to Sri Lanka’s worst economic crisis in decades. The currency crisis has hampered imports of fuel and other necessities from abroad, including powdered milk, cooking gas and gasoline.
In the past few days, many Sri Lankans have had to wait in long queues in and around the capital, Colombo, to get fuel for their motorbikes and vehicles. Some gas stations remained closed as they were not receiving new supplies.
The pandemic has dealt a heavy blow to Sri Lanka’s economy, which relies heavily on tourism and trade, with the government estimating a loss of $14 billion in the past two years. It is estimated that the economy contracted by 1.5% in the July-September 2021 period, according to the central bank. The inflation rate also rose to 12.1% in December.
Sri Lanka has borrowed heavily and faces repayment of $12.5 billion in international sovereign bonds. Officials said the government is gradually rebuilding reserves to ensure it can meet its debts.
The government settled $500 million owed on sovereign bonds in January, and official reserves totaled $2.36 billion at the end of January, according to the country’s central bank.
Including the last payment, Sri Lanka’s external debt obligations will exceed $7 billion in 2022, including the repayment of another $1 billion bond in July.
The electricity crisis has been exacerbated by the drop in the water level that feeds the country’s hydroelectric dams.