Indian Oil Corp (IOC) will provide gasoil, gasoline and jet gasoline to Sri Lanka, because the island nation fights a crippling financial disaster that has triggered an acute gasoline scarcity.
View PhotosA employee fills up a bottle at a Lanka India Oil gasoline station in Colombo November 1, 2011.
NEW DELHI (Reuters) – Indian Oil Corp (IOC) will provide gasoil, gasoline and jet gasoline to Sri Lanka, the corporate instructed Reuters, because the island nation fights a crippling financial disaster that has triggered an acute gasoline scarcity. Sri Lanka has confronted energy outages operating into hours in current days owing to an absence of funds for gasoline to fireside energy vegetation. The gasoline shortfalls have additionally led to lengthy traces at petrol and diesel stations over the previous month. The nation wants about $500 million a month to supply gasoline, however Sri Lanka’s central financial institution has stopped releasing overseas funds to pay for gasoline shipments because it contends with a exchange-related disaster.
“The supplies shall be made under a $500 million line of credit extended by the government of India to Sri Lanka for purchase of fuels,” IOC stated on Thursday. Nearly a 3rd of Sri Lanka’s electrical energy is generated by oil-fired energy vegetation and an identical quantity comes from coal and hydropower, in accordance with the state-run Ceylon Electricity Board.
Sri Lanka says it has ample coal to make sure steady electrical energy provide and has vowed to cease energy cuts from Saturday, however it has not stated the way it plans to safe gasoline provides. The IOC will provide 12-13 parcels of gasoline to Sri Lanka over the following 4-5 months towards a young issued by the Ceylon Petroleum Corp, the refiner stated.
By Nidhi Verma and Sudarshan Varadhan.
(Editing by David Goodman)
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With inputs from NDTV
