ECONOMYNEXT – Sri Lanka’s fuel distributors now owe more penalties to the island nation than the demurrages Colombo must pay after the government imposed the penalty following the economic crisis, State Energy Minister D V Chanaka said.
The island nation had to pay millions of dollars with $30,000 per day demurrages when Sri Lanka’s currency crisis evaporated all the foreign currencies which led to failure of fuel unloading.
But President Ranil Wickremesinghe’s government imposed a penalty of $50,000 per day on fuel distributors when they are unable to unload the fuel on time.
Chanaka said the penalties from the furl distributors stood at $13 million as of the end of last year, while the penalties claimed from fuel distributors for delays were at $7 million in the last two year.
“Still the legal process is going on. We are looking into the possibilities of setting off these two. If that happens, we will be getting the next amount,” he told reporters in Colombo at a media briefing on Thursday.
Sri Lanka is maintaining a $200 million worth fuel stock enough for one week and another $200 million as foreign reserves.
The penalties were imposed last year as the country started to build up fuel stock and foreign exchange reserves. (Colombo/Feb 09/2024)