Sri Lanka's Only Oil Refinery has been temporarily shut down as part of attempts to manage low foreign exchange reserves, the energy minister announced on Tuesday, causing long lines at gas stations.

The 51-year-old Sapugaskanda Oil Refinery, which has a capacity of 50,000 barrels per day, was shut down on Monday, according to Minister Udaya Gammanpila. "For around 50 days, the refinery will be shuttered. Sri Lanka currently has relatively limited foreign exchange reserves, and we rely on them more for necessities such as food and medication "he stated

Sri Lanka is also hoping to reach an agreement with India for a USD500 million credit line to purchase petroleum and replenish stockpiles, which had fallen to USD2.27 billion at the end of October. Sri Lanka spentUSD692 million on fuel imports in the first nine months of 2021, its highest import spend. As the foreign exchange situation worsened, President Gotabaya Rajapaksa saida food emergency in August to curb surging prices and address shortages of commodities.

Over the last few weeks, consumers have faced shortages of a variety of vital commodities, including cement, milk powder, rice, and cooking gas. Food inflation reached 12.8 percent in October as a result of the government's decision to prohibit the import of artificial fertilisers, which was compounded by harsh weather.

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