Sri Lanka PM Admits Buying Russian Crude As Economy Deteriorates

Sri Lanka may be forced to purchase more oil from Russia as the island nation struggles to find fuel amid an unprecedented economic crisis, newly-appointed Prime Minister Ranil Wickremesinghe told Krutika Pathi of the Associated Press (AP).

Photo Insert: Newly-appointed Prime Minister Ranil Wickremesinghe was sworn in after days of violent protests last month forced his predecessor to step down.

Wickremesinghe stated that he would first look for alternative sources before purchasing more crude from Moscow. Western nations have largely cut off Russian energy imports in response to sanctions imposed in response to Russia's war in Ukraine.

In an interview with the Associated Press on Saturday, he indicated that, despite his country's mounting debt, he would be willing to accept more cash from China.

He said Sri Lanka's situation is "of its own making," but that the war in Ukraine is exacerbating it — and that severe food shortages could last until 2024. He also stated that Russia had offered wheat to Sri Lanka.

Wickremesinghe, who is also Sri Lanka's finance minister, spoke to the Associated Press in his office in Colombo, one day shy of a month after becoming prime minister for the sixth time.

Wickremesinghe was sworn in after days of violent protests last month forced his predecessor, Rajapaksa's brother Mahinda Rajapaksa, to step down and seek safety from angry crowds at a naval base.

Wickremesinghe was appointed by President Gotabaya Rajapaksa to resolve an economic crisis that has nearly depleted the country's foreign exchange reserves.

Sri Lanka has $51 billion in foreign debt but has delayed repayment of nearly $7 billion due this year. Because of the crushing debt, the country has no money for basic imports, which means citizens are unable to obtain basic necessities such as food, fuel, medicine, and even toilet paper and matches. People have been forced to wait days for cooking gas and gasoline in lines that stretch for kilometers as a result of the shortages.

Two weeks ago, the country purchased a 90,000-metric-ton (99,000-ton) shipment of Russian crude, according to the energy minister. Wickremesinghe stated that he did not know if any additional orders were in the works. However, he confirmed that Sri Lanka is in desperate need of fuel and is currently attempting to obtain it from the country's traditional suppliers in the Middle East.

“If we can get from any other sources, we will get from there. Otherwise (we) may have to go to Russia again,” he said. Officials are negotiating with private suppliers, but Wickremesinghe said one issue they face is that there is a lot of oil going around which can be sourced back informally to Iran or to Russia.

“Sometimes we may not know what oil we are buying,” he said. “Certainly, we are looking at the Gulf as our main supply.”

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