Lanka’s energy minister warns of long power cuts if failed to secure loan by March 2022
Categories: FOREIGN COUNTRIES
Sri Lanka’s energy minister Udaya Gammanpila has warned of daily power cuts up to 4 hours if the country fails to secure a “large loan” by March 2022.Sri Lanka has been facing a severe foreign exchange shortage with falling reserves. This has led to the currency losing value, making imports costly. The country is also grappling with a shortage of almost all essentials, including fuel. The state power units have been unable to run turbines, forcing the government to impose power cuts are at peak hours. The minister stated that the country must be prepared to make the necessary sacrifices in this regard, and asked the state’s politicians to lead it by example. The present state of crisis is said to have been caused by various factors. The country’s fall of reserves is being partially blamed on the dwindling tourism industry, which has taken a beating since the onset of the Covid pandemic. Apart from that, the government’s high spending and lowering tax rates eroding the state’s revenues and vast debt repayments to China has added to their misery. The World Bank estimates that 500,000 people have fallen below the poverty line since the beginning of the pandemic, the equivalent of five years’ progress in fighting poverty.