Sri Lanka’s fuel shortage has caused concern among garment exporters, who are already facing crisis pressure as the industry is closely linked to the economy.
According to a BBC report, Sri Lanka’s Ministry of Energy has issued a fuel inventory warning, saying that there is less than 1 day of fuel left under normal demand.
According to reports, the country’s fuel reserves include 12,774 tons of diesel and 4,061 tons of gasoline. The central bank has been able to allocate only $125 million to buy fuel, far less than the $587 million needed, and the country owed $800 million to seven suppliers for purchases earlier this year.
A spokesman for the Sri Lanka Joint Apparel Association Forum (JAAF) told the media: We are very worried about fuel shortages and said that garment export manufacturers are strictly managing operations to meet Production deadline. Several plants currently have sufficient fuel stocks to meet ongoing production needs.
Sri Lanka is currently experiencing the most serious economic crisis in 70 years. JAAF issued a warning that export revenue from the garment industry is expected to decline by 20-25% during June-August, and may Unable to achieve annual export target of US$6 billion.
JAAF secretary-general Yohan Lawrence said there would be a real risk if buyers lose confidence in the industry due to “political instability”. Since apparel accounts for 40% of Sri Lanka’s total export revenue, there is an urgent need to maintain buyer confidence in the industry, and this risk “threat to the industry” is very damaging.
