In the midst of energy crisis, Sri Lanka suspends gas sales after explosions

Due to restrictions and the economic crisis on the island, Sri Lanka's only oil refinery has shut down, potentially exacerbating the energy crisis.

Here, a petrol station in short supply, in Colombo, on November 16, 2021 © Dinuka Liyanawatte, Reuters

Text by: RFI Follow

2 min

Sri Lanka has ordered sales of domestic gas cylinders to be suspended due to a recent spate of explosions, authorities said on Friday (December 3rd).

As the country faces an energy shortage, some point the finger at the public company, accusing it of changing the proportion of substances to reduce costs.

For months Colombo has drawn up a long list of restrictions to deal with its worst economic crisis.

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In recent weeks, more than 100 explosions caused by cooking gas have been recorded by the police.

Last month, a woman was killed by an explosion in a kitchen, but police have not established a connection to a gas cylinder.

Consumer representatives have accused Litro, the state-owned gas company, of increasing the proportion of the more volatile propane in its cylinders, as butane is more expensive.

Poorly maintained facilities?

Litro denies such actions and identifies poorly maintained installations and faulty plumbing as the cause of the explosions.

Regardless, " 

the company has been ordered to temporarily suspend the distribution of bottles in the market,

 " Consumer Protection Minister Lasantha Alagiyawanna told reporters.

The private company Laugfs is the only other supplier of gas cylinders on the island where their shortage is feared.

No town gas network supplies cities in Sri Lanka, so around four million households, the vast majority of the population, rely on gas cylinders for cooking.

In the face of the economic crisis, drastic import bans

The island's economy experienced

an unprecedented

3.6%

contraction

last year

, but the Central Bank expects a 4-5% GDP rebound this year with the economy gradually reopening and the roll-out of vaccination.

The

Covid-19 pandemic

had disastrous consequences for the island's economy, deprived of its tourist windfall, leading the government to take drastic measures to control its foreign currency reserves.

The import of non-essential goods, such as vehicles, spare parts, household appliances, certain food products has been banned.

But these restrictions have also had the effect of reducing certain economic activities and causing serious shortages.

Sri Lanka's only oil refinery closed for the first time in 52 years of existence last month for lack of dollars to import crude.

(with AFP)

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  • Sri Lanka

  • Raw materials

  • Economic crisis