Amid crisis, Sri Lanka plans to buy fuel shipments from India

India is a bulk purchaser of fuel from the global market and in the process gets attractive discounts.

There is a proposal in the road map worked out by the Sri Lankan envoy to New Delhi Milinda Moragoda to tie up with India to buy fuel from the world market together to benefit from the same discounted rates, the Daily Mirror reported.

Foreign Affairs Minister Prof. G.L. Peiris also proposed the idea, the report said.

According to informed sources, Sri Lanka has now sought to purchase four shipments of fuel from India instead of on credit, the daily reported.

Initially, a shipment of diesel will be dispatched. Afterwards, petrol will be sent depending on the requirements.

"However, it will take at least one more week for the purchase to materialise," an official source said.

Already, Sri Lanka has bought $700 million Indian credit to import fuel.

The latest proposal for a cash payment transaction comes in the wake of the government seeking another credit line of $500 million.

The next credit line was also in the process, reported The Daily Mirror.

Sri Lanka, which currently faces uncertainty over the next shipment of fuel, is battling its worst economic crisis leading to widespread shortages of food, fuel and medicines.