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COLOMBO — Sri Lanka has virtually run out of petrol and diesel after several expected shipments were delayed indefinitely, the energy minister said on Saturday while apologising to motorists for the worsening fuel crisis.

Kanchana Wijesekera said oil cargoes that were due last week did not turn up while those scheduled to arrive next week will also not reach Sri Lanka due to "banking" reasons.

Sri Lanka is facing a serious shortage of foreign exchange to finance even the most essential imports, including food, fuel and medicines and is appealing for international handouts.

Wijesekera said the state-run Ceylon Petroleum Corporation was unable to say when fresh oil supplies will be on the island. The CPC had also shut its only refinery over a shortage of crude oil, he added.

The refinery started operation earlier this month using 90,000 tonnes of Russian crude oil bought through Dubai-based Coral Energy on two-month credit terms.

Wijesekera said he regretted that deliveries of "petrol, diesel and crude oil shipments due earlier this week and next week" would not be fulfilled "on time for banking and logistical reasons".

Scarce supplies left in the country will be distributed through a handful of pumping stations, he said.

Public transport and power generation will be given priority, Wijesekera added, urging motorists not to queue up for fuel.

"I apologise for the delay and inconvenience," the minister said as hundreds of thousands of motorists spent long hours waiting for petrol and diesel across the impoverished nation.

Last week, the government shut non-essential state institutions along with schools for two weeks to reduce commuting because of the energy crisis.

Several hospitals across the country reported a sharp drop in the attendance of medical staff due to the fuel shortage.

Prime Minister Ranil Wickremesinghe warned parliament on Wednesday that the South Asian nation of 22 million people will continue to face hardships for a few more months and urged people to use fuel sparingly.

"Our economy has faced a complete collapse," Wickremesinghe said. 

"We are now facing a far more serious situation beyond the mere shortages of fuel, gas, electricity and food."

Unable to repay its $51 billion foreign debt, the government declared it was defaulting in April and is negotiating with the International Monetary Fund for a possible bailout.

HONG KONG — Asian markets mostly rose on Thursday on bargain buying after the previous day's battering, though oil extended losses after US Federal Reserve (Fed) boss Jerome Powell admitted the economy could tip into recession as the bank hikes interest rates to fight runaway inflation.

Soaring prices and the battle by central banks to rein them in have sent a chill through global trading floors this year, while investors are also having to deal with the uncertainty wrought by the Ukraine war and patchy pandemic recovery.

Commentators have warned for some time that the world economy could be heading for another contraction owing to the sharp increase in borrowing costs and rampant inflation, which is at decades highs in several countries.

On Wednesday, the head of the most powerful central bank in the world told lawmakers it was "certainly a possibility".

While saying the economy was strong enough for rates to rise, he added that "frankly, the events of the last few months around the world have made it more difficult for us to achieve what we want, which is 2 per cent inflation and still a strong labour market."

He also warned: "Inflation has obviously surprised to the upside over the past year, and further surprises could be in store."

The Fed this month hiked rates by 75 basis points and is expected to do the same in July, with some observers predicting two more such moves after that.

After a day of swings, Wall Street ended in negative territory, though off big early lows.

Asia fluctuated in the morning but enjoyed a more positive afternoon, though optimism remains at a premium among investors, and analysts warned it was unlikely to improve anytime soon.

Hong Kong and Shanghai led gains thanks to a pick-up in tech firms after Chinese President Xi Jinping chaired a meeting on Wednesday that pushed for "healthy" development of the fintech sector, adding to optimism that a crackdown on the industry may be coming to an end.

Xi also reaffirmed the country´s 5.5 per cent growth target for this year despite months of lockdown-induced pain for the economy.

The comments suggest the government will unveil market-friendly measures to boost growth.

Tokyo, Sydney, Singapore, Mumbai, Bangkok and Wellington were higher, but Seoul, Taipei, Manila and Jakarta fell.

London, Paris and Frankfurt opened with losses.

"Having listened to Powell's lengthy Senate testimony... it is clear that inflation is the domestic issue at the top of the political agenda," said SPI Asset Management's Stephen Innes. 

"Powell consistently bobbed and weaved his way through commenting on anything of fiscal nature but was focused on deploying the tools within the Fed's power to address their dual mandate" of reining in inflation and keeping unemployment in check. 

"So we should still position for more rate hike fallout to occur."

Powell's comments came as other top economists added to the recession talk, with former New York Fed President Bill Dudley saying it was "inevitable within the next 12 to 18 months".

Deutsche Bank CEO Christian Sewing said there was a 50 per cent chance of a contraction next year.

Elon Musk, JP Morgan boss Jamie Dimon and economist Nouriel Roubini are among several others to have made similar forecasts.

"We are still in an era where uncertainty is elevated and is expected to remain so for quite a while," said JoAnne Feeney, of Advisors Capital Management, on Bloomberg Television.

"It's risky right now in terms of the forward outlook for the global economy. Recession risk has clearly risen."

The prospect of a retreat in the global economy continued to drag oil prices down as traders fret over demand, with both main contracts down around 1 per cent, having tumbled on Wednesday. However, they were well off morning lows.

Brent and WTI have dropped around 15 per cent over the past week, even with sanctions on Russian crude exports and China's gradual reopening from lockdowns.

Adding to the selling was data Wednesday indicating a jump in US stockpiles.

"A slowdown in global growth is a risk to oil demand, which could help ease some of the tightness in the market," Warren Patterson, at ING Groep, said. 

"Already, we have seen demand estimates revised lower."

BEIRUT — Lebanon's economy should receive a welcome injection of more than $3 billion, thanks to a rebound in tourist arrivals over the summer, the tourism minister said on Wednesday.

Lebanon defaulted on its debt in 2020, the local currency has lost around 90 per cent of its value on the black market, and the UN now considers four in five Lebanese to be poor.

While soaring inflation is ravaging households with incomes in Lebanese pounds, the informal exchange rate makes prices attractive to most tourists.

"This summer is promising. We expect more than a million tourists and income of $3-3.5 billion during this summer season," Minister Walid Nassar said in an interview.

Reservations show that three quarters of the arrivals will be Lebanese nationals from the diaspora, he said.

"The remaining 25 per cent are foreigners hailing mostly from Egypt, Iraq, Jordan and Gulf countries," Nassar added.

The diaspora had shunned the traditional summer homecoming in recent years, with a deadly 2020 Beirut port blast and biting shortages compounding pandemic-linked restrictions.

The sector had been one of the pillars of Lebanon's economy, bringing in around $10 billion annually.

Global tourism is roaring back to life after the COVID-19 pandemic, and Lebanon has been keen to draw tourists and their cash dollars.

Despite crumbling infrastructure and massive electricity shortages, the tourism ministry launched a large PR campaign to promote the country as a destination.

With central bank coffers critically depleted and foreign aid hinging on reforms, a summer tourism windfall could buy Lebanon more time.

The country's top political and security brokers "are aware of how important it is for this summer season to be a success", Nassar said.

LONDON — British low-cost airline EasyJet on Tuesday exercised options to purchase 56 fuel-efficient single-aisle A320neo aircraft from European aerospace giant Airbus.

EasyJet said in a statement it had obtained steep discounts for the jets, which are worth $6.5 billion at list prices and are due for delivery between 2026 and 2029.

The carrier, based in Luton, north of London, added it has converted 18 A320neos orders to A321neos for delivery between 2024 and 2027.

"The proposed purchase firms up EasyJet's order book with Airbus, continuing the company's fleet refresh, as A319s and older A320s leave the business and new A320 and A321 neo aircraft enter providing up gauging, cost and sustainability enhancements to the business," it said in the statement.

"The directors believe this will support the delivery of our strategic objectives and provide the aircraft to help build strong shareholder returns."

The price of the 56 A320neos will be "very substantially lower" owing to concessions EasyJet was granted in connection with a 2013 agreement with Airbus.

EasyJet said the A320neo jets would deliver between 15 and 25 per cent unit cost fuel efficiency, depending upon which older aircraft they replace.

"This will significantly reduce easyJet's fuel costs and therefore improve our overall cost base," the airline added.

"It will also reduce the costs of compliance with various environmental regulations." 

Some airports also provide discounted fees for new generation aircraft, it noted.

The announcement came one day after EasyJet decided to reduce the number of its flights this summer, as the UK aviation sector struggles with severe staff shortages.

Airlines and airports are currently struggling to recruit staff as skies reopen after the lifting of pandemic lockdowns, which saw the aviation sector slash thousands of posts.

Despite the travel chaos, EasyJet had stressed Monday that its bookings remained "strong" for the peak-demand summer months of July and August.

Global air passenger traffic is expected to hit 83 per cent of pre-pandemic levels this year and the aviation industry's return to profit is "within reach" in 2023, the International Air Transport Association said on Monday.

LONDON — Rush-hour commuters in the UK faced chaos on Tuesday as railway workers launched the network's biggest strike in more than three decades, forcing people to trek to work on foot, by bike, bus — or simply not bother at all.

The RMT rail union argues the strikes are necessary as wages have failed to keep pace with UK inflation, which has hit a 40-year high and is on course to keep rising.

Last-ditch talks to avert the work stoppage broke down on Monday, meaning more than 50,000 RMT members will walk out for three days this week.

Train and London Underground stations, normally a sea of people for the morning rush to work, were deserted or even locked, with just a skeleton service running on many networks across the country.

Passengers were warned not to travel all week, with two more days of strike action scheduled for Thursday and Saturday wreaking havoc to schedules.

In London, cab firms reported a surge in demand, while main roads were packed with buses and cars, with cyclists weaving in between.

Long queues formed at bus stops on the outskirts of London shortly after 6:00am, but many gave up as services carried on without stopping, already full.

'Frustrating' 

Peter Chiodini, 73, a doctor, he had been "inconvenienced" by having to take the bus rather than the train and did not support the strikes.

"I think we do need a guaranteed minimum service because people are going to lose money on this, they're going to be inconvenienced, children have to get to exams and so on," he said.

Amber Zito, 24, a canine hydrotherapist from Holmfirth, West Yorkshire, called the strikes "frustrating" after missing her train home, but supported the rail workers. 

"Everything is kind of going tits up at the moment — planes, trains, everything.

"I blame the government. I don't blame the people who work for train companies at all, they are only trying to do what everyone wants for their job."

The government maintains that it is an issue to be resolved by the private train operators and the unions.

Transport Secretary Grant Shapps said he "deplored" the strikes, which he said evoked the "bad old days of the 1970s" when industrial action was far more common.

"The people that are hurting are people who physically need to turn up for work, maybe on lower pay, perhaps the cleaners in hospitals," he told Sky News. 

'Stay the course' 

Prime Minister Boris Johnson, addressing his cabinet, urged "the union barons to sit down with Network Rail and the train companies" to thrash out a deal.

The country needed to "stay the course", defending reforms to the rail network as needed and in the public interest.

RMT General Secretary Mick Lynch has described as "unacceptable" offers of below-inflation pay rises by both overground train operators and London Underground, which runs the Tube in the capital.

The walkouts risk causing significant disruption to major events including the Glastonbury music festival.

Thousands of teenagers taking national school exams could also be hit.

The strikes are the biggest dispute on Britain's railway network since 1989, according to the RMT.

Rail operators, however, warn of disruption throughout the week.

Only about 20 per cent of services are running during the walkouts and half of all lines are closed. Those lines that are still open are running at reduced capacity.

Moreover , RMT members on the London Underground were staging a 24-hour Tube train stoppage Tuesday.

Teachers, lawyers, NHS 

Countries around the world are being hit by decades-high inflation as the Ukraine war and the easing of COVID restrictions fuel energy and food price hikes.

Unions warn also that railway jobs are at risk, with passenger traffic yet to fully recover after the lifting of coronavirus pandemic lockdowns.

The strikes are compounding wider travel chaos after airlines were forced to cut flights owing to staff shortages, causing long delays and frustration for passengers.

Thousands of workers were sacked in the aviation industry during the pandemic, and the sector is struggling to recruit workers back as travel demand rebounds following the lifting of lockdowns.

Other areas of the public sector meanwhile are also set to hold strikes.

The Criminal Bar Association, representing senior lawyers in England and Wales, have voted to strike from next week in a row over legal aid funding.

Teaching staff and workers in the state-run National Health Service are reportedly also mulling strike action.

Several other transport unions are balloting members over possible stoppages that could occur in the coming weeks.