Sri Lanka's Prime Minister expects inflation will rise in the country to 60 per cent by the end of the year. 

Ranil Wickremesinghe said the government would stabilise the rupee as soon as possible, and would limit money printing in future. 

His comments come as the cash-strapped country extended school closures for one week because there isn't enough fuel for teachers and parents to get children to classrooms. 

Sri Lanka's Energy Minister has also appealed to the country's expatriates to send money home through banks to finance new oil purchases.

A huge foreign debt has left the Indian Ocean island with no suppliers willing to sell fuel on credit.

The available stocks — which will be sufficient for only several days — will be provided for essential services, including health and port workers, public transport and food distribution, Sri Lankan officials said.

He said the government had ordered new fuel stocks and the first ship with 40,000 metric tons of diesel is expected to arrive on Friday, while the first ship carrying petrol would come on July 22.

Several other fuel shipments are in the pipeline.

However, he said, authorities are struggling to find $US587 million ($853 million) to pay for the fuel.

Mr Wijesekera said that Sri Lanka owed about $US800 million to seven fuel suppliers.

Last month, schools were closed nationwide for a day due to fuel shortages and had remained closed for the last two weeks in urban areas.

Schools will remain shut until Friday.

Authorities also announced countrywide power cuts of up to three hours a day from Monday because they can't supply enough fuel to power generating stations.

Sweeping power cuts have been a blight on Sri Lanka's economy for months, while the country of 22 million people has been unable to pay for essential imports of food items, fertiliser, medicines and fuel.

Mr Wijesekera said the main problem was the lack of dollars and appealed to some 2 million Sri Lankans working abroad to send their foreign exchange earnings home through banks instead of informal channels.

He said workers' remittances — which usually stood at $US600 million per month — had declined to $US318 million in June.

According to Sri Lanka's central bank, the remittances — the nation's main foreign exchange earner — dropped from $US2.8 billion in the first six months of 2021 to $US1.3 billion in the same period this year, a decline of 53 per cent.

That drop came after the government last year ordered the mandatory conversion of foreign currency.

It said that black-market premiums had led people to hoard foreign currency.

Sri Lanka seeks to import fuel from Russia 

Sri Lanka has been getting most of its fuel needs from neighbouring India, which provided it with a credit line.

The government said it was also negotiating with suppliers in Russia and Malaysia.

Sri Lanka has suspended repayment of about $US7 billion in foreign loans due this year, out of $US25 billion to be repaid by 2026.

The country's total foreign debt is $US51 billion.

The economic meltdown has triggered a political crisis with widespread anti-government protests erupting across the country.

Protesters have blocked main roads to demand gas and fuel, while television stations showed people in some areas fighting over limited stocks.

In the capital, Colombo, protesters have been occupying the entrance to the President's office for more than two months to demand President Gotabaya Rajapaksa's resignation.

They accuse him and his powerful family — that included several siblings holding top government positions — of plunging the country into the crisis through corruption and misrule.

AP/Reuters