Sri lanka News – Sri Lanka’s power cuts will be slashed to 1 hour 40 minutes as the Public Utilities Commission Chairman Janaka Ratnayake said a shipment of fuel arrived in the country on money borrowed from India.
Areas A,B,C,D,E,F,G,H,I,J,K, P,Q,R,S, T, U, V, W will have power cuts of 1 hour an 40 minutes 5.30pm to 11.00pm.
The PUCSL said 12,000 metric tonnes of diesel from the Indian credit line on Saturday and 6,000 tonnes from the Indian Oil Corporation.
On April 05 and 06 12,000 tonnes of diesel would come from the Indian credit line.
April 06 and 07 12,000 Metric tonnes of diesel and 15,000 metric tonnes of furnace oil would come.
In addition “reasonable allocation” from an anchored ship would be made, the regulator said.
“Therefore the PUCSL will guarantee to the public that the prevailing power cuts will be reduced considerably in the days to come,” the regulator said.
Sri Lanka has faced severe forex shortages due to money printed over two years to keep interest down.
An attempt to float the rupee has led to a collapse from 200 to 300 to the US dollar with no float established as of Friday.
The power cuts are sharply reduced from 12 to one hour as the daily energy demand has surged partly due to people switching to electricity from gas, where there is also a shortage.
The CEB has so far not raised prices.
If the Indian credit line is used to fund losses of the CEB, Sri Lanka would end up with a larger external current account deficit and higher public foreign debt, analysts say.
Sri Lanka ended up with large power cuts partly because the CEB was denied 1 to 2 hour power cuts to conserve water earlier in the year. When CEB losses are finance by state banks with printed money taken from the central bank through the overnight window, forex shortages worsen. (Colombo/Apr03/2022)