Sri Lankan businesses are struggling to keep operating after a surge in fuel prices that is exacerbating the highest inflation rate in the Asia-Pacific region, with authorities concerned supplies may run out as they negotiate an IMF bailout.
The island nation of 22mn is going through its worst debt and economic crisis in decades as a foreign exchange shortage left the government unable to pay off its loans and import basics including food and medicine. This has triggered weeks of mass protests with President Gotabaya Rajapaksa under pressure to resign.
A surge in global oil and gas prices, combined with a 60 per cent drop in the value of the Sri Lankan rupee since last month, has also led to critical shortages of petrol and cooking gas.
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