Sri Lanka president asks Russia's Vladimir Putin for help to buy fuel

Image source, Getty Images

Russia's Vladimir Putin has been asked by the president of Sri Lanka to help with fuel imports as the country faces its worst economic crisis since independence.

Gotabaya said he had a good discussion with Mr. Putin.

The country may soon run out of petrol, according to the energy minister.

Hundreds of people protested against the government in the capital city.

"I requested an offer of credit support to import fuel after my conversation with the Russian leader," Mr Rajapaksa wrote on his verified account.

The Russian flag carrier Aeroflot stopped flights between Moscow and Colombo last month.

Strengthening bilateral relations in sectors such as tourism, trade and culture was paramount in reinforcing the friendship our two nations share, he said.

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Had a very productive telecon with the #Russia President, Vladimir Putin. While thanking him for all the support extended by his gvt to overcome the challenges of the past, I requested an offer of credit support to import fuel to #lka in defeating the current econ challenges.

— Gotabaya Rajapaksa (@GotabayaR) July 6, 2022

The country has already purchased oil from Russia in recent months to help bolster fuel supplies during the crisis, and the government has signaled that it is willing to buy more from the energy rich country.

Over the course of the last few weeks, there have been a number of shortages of fuel, power, food and other essential items, despite attempts by the president to resolve the situation.

The sale of petrol and diesel for non-essential vehicles was stopped last week.

The Central Bank raised its key interest rates by a single percentage point to deal with the soaring cost of living in the country.

The deposit rate was increased to 14.5%, which was the highest in 21 years.

As the cost of food rose, the annual inflation hit a record high of 54.6% in June.

On Wednesday, hundreds of protesters gathered near the parliament building to launch their final push to oust the government.

There could be unrest at short notice.

The Association of British Insurers said that visiting countries against Foreign Office advice would probably invalidate travel insurance.

The South Asia Editor of the British Broadcasting Corporation.

Both fuel and tourists are vital to the country's economy and need the assistance of Russian President Putin.

Businesses and public transport have been crippled by the island nation's lack of fuel.

It's difficult to get oil shipments from its usual suppliers in the Gulf due to a lack of foreign currency and logistical difficulties.

Russian oil has been restricted in response to the invasion of Ukraine. The risk of triggering the displeasure in Western capitals was clearly taken by the President.

Aeroflot suspended Moscow-Colombo passenger flight services last month due to a commercial dispute over payment.

Russian tourists made up almost a fifth of total arrivals in the months before the war began.

Russian tourists might find it hard to pay for things while they are on holiday if the flights resume.

Several Russian banks have been disconnected from using the international payment system and Visa and Master credit cards have stopped issuing Russian credit cards.

Economic mismanagement and the impact of the Pandemic have led to a decline in the country's foreign exchange reserves.

It has been difficult to pay for imports of essential goods due to this.

In May, it became the first company in history to default on its debts when it failed to make debt interest payments.

The country is in talks with the International Monetary Fund over a rescue package.

The International Monetary Fund is one of the organizations that Sri Lanka's government needs to raise $5 billion in this year's fiscal year.

• Sri Lanka is an island nation off southern India: It won independence from British rule in 1948. Three ethnic groups - Sinhalese, Tamil and Muslim - make up 99% of the country's 22 million population.
• One family of brothers has dominated for years: Mahinda Rajapaksa became a hero among the majority Sinhalese in 2009 when his government defeated Tamil separatist rebels after years of bitter and bloody civil war. His brother Gotabaya, who was defence secretary at the time, is now president.
• Now an economic crisis has led to fury on the streets: Soaring inflation has meant some foods, medication and fuel are in short supply, there are rolling blackouts and ordinary people have taken to the streets in anger with many blaming the Rajapaksa family and their government for the situation.