Sri Lanka to pay $72.6 mln for 90,000 T Russian oil, minister says

Sri Lanka pays $72.6 million to purchase a 90,000-tonne cargo of Russian oil docked at Colombo’s port for weeks, its power minister stated on Saturday, because the island nation works to restart its solely refinery and tackle a crippling power disaster.

Sri Lanka has struggled to pay for gasoline, meals and drugs imports attributable to a extreme scarcity of international foreign money. An unprecedented monetary disaster has additionally pressured the nation to default on some exterior debt.

Like the remainder of Asia, Sri Lanka needs to shift to long-term crude tenders to hedge towards excessive crude spot costs, however dwindling international change reserves have hampered its ambitions, the facility minister stated on Saturday.
“I’ve reached out to a number of international locations, together with Russia, for assist to import crude and different petroleum merchandise,” Energy and Vitality Minister Kanchana Wijesekera informed reporters.

The 90,000-tonne consignment was ordered by Dubai-based Coral Vitality, Wijesekera stated, including that the fee would facilitate restarting the nation’s sole refinery, which has been closed since March 25.

“The following cargo will even be ordered from the identical firm. One other consignment will likely be wanted throughout the subsequent two weeks to maintain the refinery operating repeatedly,” Wijesekera stated.

Queues of two-wheelers and vehicles exterior gasoline stations, generally miles lengthy, have grow to be a well-recognized sight for Sri Lankans this 12 months, with excessive international oil costs exacerbating their distress.

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