Colombo: Sri Lanka has given approval for India’s Lanka Indian Oil Corporation (LIOC) to open 50 new fuel stations, a company official said as part of efforts to reduce severe shortages that have crippled island nation.

Sri Lanka is caught in its worst financial crisis in more than 70 years as a shortage of foreign exchange has left it struggling to pay for essential imports of food, medicine and, critically, fuel.

LIOC, smaller player in island’s fuel supply duopoly, already has 216 fuel stations and will invest about 2 billion rupees ($5.5 million) on expansion, its Managing Director Manoj Gupta told Reuters. LIOC is a subsidiary of India’s Indian Oil Corporation and is listed on Colombo Stock Exchange. “We have been trying for some time to get this approval and we are more than willing to come forward and play a larger role to support and work with Sri Lanka to resolve its challenges,” Gupta said. India has poured about $ 4 billion into its southern neighbour this year to prop up economy, including swaps and multiple credit lines to purchase fuel, food and fertiliser.

Sri Lanka is also in discussions with International Monetary Fund for a possible $ 3 billion bailout package, besides seeking assistance from China and Japan.

Published in The Daily National Courier, August, 08 2022

Like Business on Facebook, follow @DailyNCourier on Twitter to stay informed and join in the conversation.