COLOMBO, March 26, 2022 (BSS/AFP) - One of Sri Lanka's biggest fuel suppliers
hiked the price of gasoline by nearly 20 percent on Saturday, the second
increase in as many weeks, as the country struggles to import oil without
dollars.

Lanka IOC, a fuel retailer which accounts for a third of the market, said it
raised the petrol price to 303 rupees (just over $1) a litre, up from 254
rupees. Two weeks ago, the company increased the price of gasoline by 25
percent.

The company said the 30 percent depreciation of the rupee against the US
dollar and other major currencies this month fuelled the increase.

There was no immediate price revision from the state-owned Ceylon Petroleum
Corporation but its representatives, who asked to remain anonymous, told AFP
it was almost certain to follow Lanka IOC.

Sri Lanka is in the grip of its worst economic crisis since independence from
Britain in 1948.

The island's foreign reserves have hit rock bottom, with commercial banks
unable to secure dollars to finance imports of food, fuel and medicines.

At least four people have died while waiting in long queues to buy fuel in
the past week.

Sri Lanka was in a deep economic crisis when the Covid-19 pandemic hit,
reducing foreign worker remittances and crippling the lucrative tourism
sector -- a key source of dollars for the economy.

The government imposed a broad import ban in March 2020 to save foreign
currency.

The shortages pushed food prices up 25 percent last month, with overall
inflation at 17.5 percent -- the fifth consecutive monthly record high.

Sri Lanka is also facing five-hour rolling electricity blackouts as thermal
generators have run out of oil.

Three international rating agencies have downgraded the island since late
last year, on fears it may not be able to service its $51 billion sovereign
debt.

Sri Lanka announced earlier this month that it will seek an IMF bailout and
talks are expected to open next month in Washington.