Sri Lankan restaurants collapse amidst gas shortage

Restaurants all over Sri Lanka have been forced to close down as a result of a gas shortage, leaving as many as 500,000 employees without a job.

The All Island Canteen Owners Association Chief, Asela Sampath reported that all canteens and restaurants will be forced to shut from 17 March. This follows a worsening shortage of essential commodities such as medicines and fuel as well as a surge in the price of bread and other basic goods. Responding to this crisis, thousands staged a massive protest in Colombo with demonstrators attempting to storm the Presidential Secretariat Office. The demonstrators were led by the leader of Sri Lanka's opposition, Sajith Premadasa, who demanded a snap presidential election.

The country's president, Gotabaya Rajapaksa, has responded to the crisis announcing his willingness to work with the International Monetary Fund. This u-turn follows vigorous campaigning by members of the cabinet against such a move. State Minister Vasudeva Nanayakkara rejected the proposal claiming that "even if we die, we will not seek assistance from the IMF”. In January 2021, Sri Lanka’s Central Bank Governor, Weligamage Don Lakshman, rejected the possibility of turning to the IMF for support. IMF’s prescriptions which include fiscal consolidation and removing caps on borrowing costs would undermine Sri Lanka’s sovereignty, he maintained. Instead of turning to the IMF, Sri Lanka has increasingly turned to support from Bangladesh and China.

An elderly lady also waiting in line for gas, for a second unsuccessful time, said, “There is only enough liquid gas to cook for today, if there is no oil today too we can’t even buy food in restaurants”.

Among the many affected, are individuals living away from home for work or education wholly relying on takeaways as their only source of food.

One man said, “I rent out a room, I don’t have access to a kitchen. I have no family here, and now I don’t have access to restaurants either”.

Read more here and here.

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