Sri Lanka imposes daily 10-hour power cut amid fuel shortage 

Colombo: Sri Lanka Wednesday began imposing a daily nationwide 10-hour power cut as it ran out of hydro-electricity on top of a severe shortage of fuel, starting March 30 (today), said Janaka Ratnayake, Public Utilities Commission chairman. 

Explaining the daily 10-hour outage, Janaka Ratnayake said that a flexible exchange regime has created severe foreign exchange shortages and power deficits in the dry season.  

Though the government has said power cuts will be reduced gradually, they have been extended mainly due to lack of fuel and higher demand as demand went up due to a lack of price increase.

The South Asian nation of 22 million people is in its worst economic crisis since independence in 1948.

According to officials, more than 40% of Sri Lanka's electricity is generated from hydro, but most of the reservoirs were running dangerously low because there had been no rains.

Most electricity production is from coal and oil. Both are imported but in short supply as the country does not have enough foreign exchange to pay for supplies.

The government took 12 days to find $44 million to pay for the latest shipment of LP gas and kerosene, officials said.

Earlier, Colombo imposed a broad import ban in March 2020 to save foreign currency needed to service its $51 billion in foreign debts. But this has led to widespread shortages of essential goods and sharp price rises.

In Sri Lanka, many hospitals have stopped routine surgeries and supermarkets have been forced to ration staple foods, including rice, sugar and milk powder.