Sri Lanka to buy fuel from IOC subsidiary to ward off power problems

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Sri Lanka plans to buy 40,000 metric tons of diesel and petrol each from Lanka IOC (LIOC)–the Sri Lankan subsidiary of the Indian Oil Corporation (IOC).<br />
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A government statement said that the energy ministry has held discussions with IOC, which has agreed to supply the fuel. The Sri Lankan cabinet <a href="https://economynext.com/sri-lanka-to-buy-80000mt-of-diesel-and-petrol-from-india-90083/">has given the nod </a>to purchase the fuel.<br />
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On Tuesday, Power Minister Gamini Lokuge told journalists that the Finance Ministry has held discussions with IOC and the government will pay the firm in rupees.<br />
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The island nation is currently facing a severe shortage of fuel for vehicles as well as power outages due to a debilitating foreign exchange crisis. Subsequently, the country has not imported crude oil to feed its refineries and power plants.<br />
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Last month, Sri Lanka signed an agreement with India for a $1 billion package to tide over the shortage of food and essential medicines. India also extended an additional $500 million line of credit to its southern neighbour for purchasing fuel from India.<br />
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The Sri Lankan government also signed the Trincomalee oil tank farm deal–a joint venture between Sri Lanka, LIOC and the Ceylon Petroleum Corporation for developing the 850-acre oil storage facility in the north-east part of the island. The deal will also strengthen energy security for Sri Lanka in days to come.</p>