Sri Lanka ends fuel rationing imposed at height of economic crisis
The Hindu
Sri Lanka ends fuel rationing scheme, hinting at economic improvement. Government imposed rationing in Aug 2022 due to forex crisis, leading to queues and deaths. Indian and Chinese credit lines and IMF bailout helped stabilize economy.
Sri Lanka has formally announced an end to the fuel rationing scheme imposed one year ago during the height of the unprecedented economic crisis, a senior minister said on Friday, hinting at an improvement in the island nation's economy.
Energy minister Kanchana Wijesekera said the QR-based fuel rationing system, imposed in August 2022, when Sri Lanka plunged into its worst economic crisis since 1948, would be discontinued from Friday.
Under the rationing system, registered consumers at filling stations were guaranteed a weekly quota.
Sri Lanka announced its first-ever sovereign default in April 2022 and faced its worst economic crisis in history due to a shortage of foreign exchange reserves.
The unprecedented forex shortages meant that the imports of fuel and essentials became harder, causing miles-long queues.
Also Read: India to increases grants by 50% for community development projects in Sri Lanka: Official
More than 20 people died from exhaustion at fuel queues when the rationing began.