Fuel pumps may go dry in Sri Lanka by end-April as India’s credit line ends

Sri Lanka is expected to exhaust $500 million in fuel aid provided by India to mitigate the island nation’s power crisis with the delivery of 120,000 tons of diesel and 40,000 tons of petrol over the next two weeks. India is scheduled to send three 40,000 ton-shipments of diesel on April 15, 18 and 23, with a petrol shipment of the same quantity to be sent on April 22. India on Wednesday sent two more fuel consignments to Sri Lanka – 36,000 tons of petrol and 40,000 tons of diesel.

Amid fears Sri Lanka might run out of fuel (again) by the end of this month, officials from both sides are negotiating an increase to the credit line. If the talks are unsuccessful Sri Lanka will only be allowed to reuse the credit line once payments are settled for the purchases already made.

So far India has delivered 270,000 tonnes of fuel to Sri Lanka under its neighbourhood first policy to help it overcome its worst economic crisis in decades.