Sri Lanka's economy 'has collapsed,' unable to buy oil: PM Wickremesinghe

Sri Lanka has been muddling through mainly supported by $4 billion in credit lines from neighbouring India.

Sri Lanka's prime minister says its debt-laden economy has “collapsed” after months of shortages of food, fuel and electricity, and the South Asian island nation cannot even purchase imported oil.

“We are now facing a far more serious situation beyond the mere shortages of fuel, gas, electricity and food. Our economy has completely collapsed. That is the most serious issue before us today,” Prime Minister Ranil Wickremesinghe told Parliament.

Wickremesinghe is also the finance minister tasked with stabilizing the economy, which is foundering under the weight of heavy debts, lost tourism revenue and other impacts from the pandemic and surging