Sri Lanka’s prime minister says the United Nations has arranged a worldwide appeal to help the island nation cope with critical shortages of food, fuel and medicines, but the projected funds barely scratch the surface of the $6 billion it needs to stay afloat over the next six months.
In a speech to Parliament, Prime Minister Ranil Wickremesinghe said the U.N. seeks to provide $48 million in assistance over a four-month period.
Wickremesinghe said it will be tough for the next three weeks to obtain some essentials and urged people to be united and patient, to use the scarce supplies as carefully as possible and avoid nonessential travel.
He urged all citizens to refrain from thinking about hoarding fuel and gas during this period. After those difficult three weeks, they will try to provide fuel and food without further disruptions, adding that negotiations are underway with various parties to ensure this happens.
Sri Lanka is nearly bankrupt, having suspended repayment of its foreign loans. Its foreign reserves are almost spent, which has limited imports and caused serious shortages of essential items including food, medicine, fuel and cooking gas.
It is due to repay $7 billion this year of the $25 billion in foreign loans it is scheduled to pay by 2026. Sri Lanka’s total foreign debt is $51 billion.
Authorities have started discussions with the International Monetary Fund for a bailout package, and Wickremesinghe said he asked the IMF to lead a conference to unite Sri Lanka’s lenders.
A decision last year to ban imported agrochemicals and make farming totally organic halved rice production during the main cultivating season, though the ban has since been withdrawn. A lack of funds to buy fertilizer threatens future yields, too, causing fears of a worsening food crisis.
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