By The South Asia Times report

COLOMBO: Sri Lanka's ongoing economic crisis has worsened as the country’s Prime Minister announced that only one day of petrol stock remaining and they are going to run out of petrol. 

In a series of tweets, the new premier Ranil Wickremesinghe warned that the next couple of months will be most difficult for the nation.

“I have no desire to hide the truth and to lie to the public. Although these facts are unpleasant and terrifying, this is the true situation,” Ranil Wickremesinghe tweeted.

He added that the country's total revenue is SLR 1.6 Trillion while expenditure is SLR 4 Trillion and they are facing a Budget Deficit of SLR 2.4 Trillion (13% of GDP)

“Debt Ceiling: SLR 1950 Billion out of the approved debt ceiling of SLR 3200 Billion by the 2nd week of May. Foreign Reserves: They were at USD 7.5 Billion in Nov. 2019. However, today it is a challenge for the treasury to find USD 1 Million,” he said.

Explaning the problems faced by the new government, he said to ease the queues for fuel, his government needs approx. USD 75 million while they have only petrol stocks for a single day. 

“We managed to bring in a diesel shipment yesterday. Two more diesel shipments under the Indian credit line due on 18/5 and 1/6. Two petrol shipments due on 18/5 and 29/5. We are working to obtain dollars in the open market to pay for these shipments,” he said.

Talking about the shortage of electricity, he said that as quarter of electricity is generated through oil, there is a possibility that the power outages will increase to 15 hours a day. 

“Solution: For over 40 days 3 ships with crude oil and furnace oil have been anchored within the maritime zone of SL. We have already obtained money to avert this crisis,” said the premier.

Sri Lankan Prime Minister told his nation that his government need $20 million to provide gas to the consumers and they are working to arrange payments as the shipment is scheduled to arrive on Tuesday.

Sri Lanka is also facing a shortage of medicines and surgical equipment and government immediately needs  SLR 34 Billion due for 4 months to suppliers of medicine, medical equipment, and food for patients.

“We will face considerable challenges and adversity. However, this will not be for long. In the coming months, our foreign allies will assist us. They have already pledged their support. 

“Last Thursday when I accepted office as the Prime Minister, I did not do so only as a Political Leader but also as a National Leader who has benefited from free education at the Faculty of Law of the University of Colombo,” he said and promised to work hard to fulfill his duty and bring out the country from current crisis.

Sri Lanka has defaulted on all of its foreign debt as the island nation suffers from the worst economic crisis in decades, sparking enormous protests. Its foreign reserves fell as a result of a sharp decline in tourism activities during the coronavirus outbreak.

The government has approached the International Monetary Fund to help it pay for imports of food, medicines, and fuel.

Last week, Mahinda Rajapaksa stepped down as prime minister amid the crisis, submitting his resignation letter to President Gotabhaya Rajapaksa, his younger brother. Many have demanded of the influential family to quit for mismanaging the economy.