Recently, Sri Lanka, an island country in South Asia, made another big news. The Prime Minister of Sri Lanka, Viktor masinha, said Sri Lanka had gone bankrupt and the unprecedented economic crisis would last until at least the end of 2023.

The Monetary Commission of the Central Bank of Sri Lanka decided to increase the central bank's standing loan facility interest rate and standing deposit facility interest rate by 100 basis points. In June this year, Sri Lanka's overall inflation rate was 54.6%, and the food inflation rate was as high as 80.1%.

Sri Lanka is experiencing its worst economic crisis since independence in 1948. The prime minister said that the ongoing rescue negotiations between Sri Lanka and the International Monetary Fund (IMF) depend on reaching a debt restructuring plan with creditors before August.

"As the country is in bankruptcy, we have to submit another sustainable debt repayment plan to them. We can reach an agreement only when (IMF) is satisfied with the plan."

In addition, UNICEF pointed out that Sri Lanka is on the verge of a humanitarian crisis. Since the beginning of this year, 70% of local families have been unable to continue eating three meals, and the inventory of fuel and basic medical supplies has also been rapidly exhausted.

The government even predicted that the inflation rate would rise to 60% in the future, and stopped printing rupees to curb inflation.

It is reported that due to the coronavirus pandemic and the crisis in Russia and Ukraine, a large number of tourists are restricted from moving, which directly leads to a shortage of foreign exchange and the inability to buy enough fuel, food, necessities and other commodities.

As a result, Sri Lanka is short of electricity and many places have power cuts. To make matters worse, Ceylon Power Bureau, the country's largest state-owned power company, even increased the price of electricity for customers who need it most by more than 800%.

Bandura gunawadna, a spokesman for the Sri Lankan cabinet, said that the cabinet had decided to provide fuel only to basic services. In addition, due to restrictions on fuel supply, inter provincial buses are also likely to be suspended.

It can be seen in Colombo that since the end of June, due to the shortage of fuel, the number of vehicles driving on the city's roads has decreased significantly, and it is more difficult for people to travel.

Faced with such difficulties, Sri Lanka certainly did not sit idly by. Kanchana wijesekera, Minister of electricity and energy of Sri Lanka, said that he would arrive in Russia to continue negotiations on the direct purchase of Russian fuel.

"If we can buy oil directly from the Russian government or Russian companies, it is an advantage for us. Negotiations are currently under way," he said

Earlier, Sri Lanka sought a discount oil price of about $30 lower than the international benchmark oil price from Russia. The country said it had received 90000 tons of Russian crude oil, but needed more.

In addition to crude oil, the Sri Lankan government will send its special envoys to Qatar and Russia this week to ensure new supplies, and hopes India to approve a $500million fuel import credit line.

Mirinda Moragoda, Sri Lanka's High Commissioner to New Delhi, met with hadip Singh Puri, India's minister of oil and gas, housing and urban affairs, in New Delhi last week to discuss the supply of gasoline and diesel fuel available to the island country on the basis of the current emergency.

In addition, the government is preparing a cabinet document allowing more fuel distributors, and plans to recruit four new dealers to operate the gas stations of the state-run Ceylon oil company with the permission of foreign companies.