Sri Lanka completes payment for Russian coal, easing power crisis

Crisis-hit Sri Lanka has paid for two Russian cargoes to SUEK AG’s Singapore unit through a telegraphic transfer, two senior government officials told Reuters, in a move that is likely to help ease the island nation’s crippling power shortage.

Demonstrations have been held across the South Asian island country of 22 million people for weeks with the public angry over the government’s mishandling of the economy that has led to shortages of essentials and prolonged power cuts.

Sri Lanka has been struggling to pay for critical imports including fuel and food due to paltry forex reserves, while many Russian firms are struggling to complete transactions because foreign banks are wary of doing business with them after Western nations imposed sanctions on Russia over its attack on Ukraine.

Government officials scrambled for days to facilitate payment for the cargoes which were stranded on the coast without unloading due to non-payment of dues, a top power ministry official said.

Power Minister Kanchana Wijesekera confirmed to Reuters that the payment had finally been made.

“We have paid for the two shipments of coal,” Wijesekera told Reuters.

Completing the payment is crucial for ensuring steady power supplies in the blackout-plagued country.