Cabinet clashes over seeking IMF loan to solve dollar crisis | Breaking News

Energy Minister – Udaya Gammanpila has stated that it will not be possible to purchase oil by 2022 February due to the prevailing situation at the Ceylon Petroleum Corporation (CPC).

The minister had stated this at the Cabinet meeting last Monday (15) chaired by President Gotabhaya Rajapaksa.

During the meeting, the dollar crisis was discussed at length and the Energy Minister had pointed out that the US$ 350 million alone was required to import the monthly fuel requirement and efforts to raise the funds had not been successful.

However, it is said that the government’s inability to reach a consensus on whether to obtain a loan from the International Monetary Fund as a solution, could further worsen the crisis.

The ‘Lankadeepa’ newspaper reports that a group of ministers have suggested that the only solution to the serious crisis faced by the country is to seek a loan from the IMF, while others have strongly opposed it.

It is reported that the government is indecisive about whether or not to seek IMF assistance at this juncture.

Ministers who support this idea have urged to do so right away, pointing out the dollar shortage has severely affected the importation of essential goods and medicines. 
However, a group of ministers including Bandula Gunawardena and Vasudewa Nanayakkara have strongly opposed it saying conditions will have to be met if an IMF loan is sought, compelling to cut back on the public welfare work.

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