The World Briefly
June 23, 2022Capsized
Sri Lanka
|
Listen to Today's Edition
 |
Sri Lanka’s economy has “completely collapse,” according to the country’s prime minister, who warned that the South Asian island is in such a dire state it cannot pay for essential oil imports, Sky News reported Wednesday.
Prime Minister Ranil Wickremesinghe told parliament Wednesday that the country is facing “a far more serious situation beyond the mere shortages of fuel, gas, electricity and food.”
He noted that the state-owned Ceylon Petroleum Corporation is $700 million in debt and that “no country or organization in the world is willing to provide fuel to us.”
Wickremesinghe’s comments follow months of shortages of food, fuel and electricity in Sri Lanka, resulting in soaring prices and sparking mass anti-governmental protests.
Sri Lanka has been struggling under the weight of its debt, as well as the effects of the coronavirus pandemic, including a loss of tourism earnings.
In April, it suspended payments equivalent to $12 billion in foreign debt.
Last month, Wickremesinghe’s predecessor, Mahinda Rajapaksa, resigned following months of violent demonstrations and economic malaise.
Even so, the new prime minister said he is working with the International Monetary Fund to secure an agreement by the end of this month. At the same time, Wickremesinghe also said that he would ask for help from India, China and Japan to resolve the crisis.
Not already a subscriber?
If you would like to receive DailyChatter directly to your inbox each morning, subscribe below with a free two-week trial.
Support journalism that’s independent, non-partisan, and fair.
If you are a student or faculty with a valid school email, you can sign up for a FREE student subscription or faculty subscription.
Questions? Write to us at hello@dailychatter.com.