Ranil Wickremesinghe, who was appointed prime minister on Thursday, said in an address to the nation the country urgently needs $75 million in foreign exchange to pay for essential imports.
“Right now we only have fuel supplies for a single day. The next few months will be the most difficult of our lives,” he said.
“We must prepare to make some sacrifices and face the challenges of this time.”
Two shipments of petrol and two shipments of diesel via an Indian credit line could provide relief in the next few days, he added – but the country is also facing shortages of 14 essential medicines.
Sri Lanka is currently facing a budget deficit of US$6.8 billion (Sri Lankan rupees 2.4 trillion), or 13% of its GDP.
The crisis sparked widespread protests against President Gotabaya Rajapaksa and his family, culminating in the resignation of his older brother Mahinda as prime minister last week after clashes between government supporters and protesters left nine dead and 300 injured.
In response to the crisis, Wickremesignhe said the country would print more money and propose privatizing Sri Lanka’s flagship airline to keep the economy afloat – although he acknowledged inflation could get worse in the short term.
In his Thursday address, he vowed to build “a nation with no queues for kerosene, gas and fuel…a nation with abundant resources.”
Desperate Offer
The President replaced Mahinda Rajapaksa with Wickremesinghe, an opposition MP who had previously held the post five times, in a desperate attempt to appease protesters.
But the protesters have said they will continue their campaign as long as Gotabaya Rajapaksa remains president. They have also labeled Wickremesinghe a stooge and criticized his appointment of four cabinet ministers, all of whom are members of the Rajapaksa brothers’ political party.
Wickremesinghe said Monday he took on the role for the good of the country.
In Colombo, the commercial capital, long lines of auto rickshaws, the city’s most popular mode of transport, wait at gas stations in a futile wait for fuel.
“I’ve been in line for more than six hours,” said one driver, Mohammad Ali. “We stand in line for almost six to seven hours just to get gas.”
Another driver, Mohammad Naushad, said the gas station where he was waiting had become empty.
“We’ve been here since 7-8 a.m. and it’s still not clear if they’re going to have fuel or not,” he said. “Nobody knows when it will come. Is there any point in waiting here, we don’t know either.”
The strategic Indian Ocean island nation, hard hit by the Covid-19 pandemic, soaring oil prices and populist Rajapaksa tax cuts, is in the midst of a crisis unprecedented since independence in 1948.
A chronic shortage of foreign exchange has fueled runaway inflation and shortages of medicines, fuel and other essentials, drawing thousands onto the streets in protest.
A shipment of diesel with an Indian credit line arrived in the country on Sunday but has yet to be distributed on the island.
“Request the public not to queue or charge for the next three days until the 1,190 gas station deliveries are completed,” Energy Minister Kanchana Wijesekera said on Monday.
Wickremesinghe is yet to announce key ministers, including the crucial post of finance minister, who will negotiate with the International Monetary Fund over much-needed financial aid for the country.
Ex-Finance Minister Ali Sabry had held preliminary talks with the multilateral lender but backed out last week along with Mahinda Rajapaksa.