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Litro Gas grappling with billions of rupees in losses as govt. still undecided on LPG price hike

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by Suresh Perera

With staggering losses running into Rs. 3.8 billion (Rs. 3,800 million) over the past three months, Sri Lanka’s biggest importer and supplier of Liquid Petroleum Gas (LPG) is in the throes of a grave financial crisis as the government continues to dilly-dally on the demand for a substantial increase in the price of cooking gas.

“There’s no option other than to absorb the mounting losses as no price revision has been granted so far”, says Anil Koswatte, Chairman/CEO of Litro Gas Lanka.

“We are facing an uphill task in continuing operations amidst the financial difficulties”, he noted.

LPG prices zoomed in the global market over the past quarter with a ton selling at a new high of US$ 600.

“There’s a ray of hope now that international prices will reduce further”, Koswatte said, referring to the marginal dip over the past week with pricing per tonnage settling at US$ 539.

Litro Gas has sought a Rs. 700 increase per domestic cylinder in a desperate bid to at least cover procurement costs, but the government go-ahead has still not been forthcoming, a senior official said.

“The more people buy cooking gas, the more the losses we suffer as 700 rupees are lost on every cylinder purchased”, he explained.

Litro’s biggest marketing segment is the domestic household market, which translates into 83% of total sales.

Asked whether a government bailout has been sought as, with billions of rupees in accumulated losses, Litro Gas was being pushed towards a cash crunch, the Chairman said that as a company, Litro Gas cannot expect a subsidy from the Treasury.

“Anyway, we are trying to work out some relief and a meeting has been scheduled to examine the possibility of tiding over the situation”, Koswatte noted.

In terms of the law, Litro Gas, though a private company, cannot increase the price of domestic LPG cylinders without the approval of the Consumer Affairs Authority (CAA). However, industrial LPG cylinders are excluded from the price control mechanism.

There’s still no word from the government on the price revision on domestic gas cylinders that was sought about two months ago, a senior official said.

“Even if a price increase is finally granted, we won’t be able to recoup our losses”, he pointed out.

It is true that at a time the government has come under fire over the spiraling cost of living, increasing the price of cooking gas will make a bad situation worse, he admitted.

However, there should be a level playing field for companies also to remain viable to continue their uninterrupted services to the public, he reasoned.

Sri Lanka Insurance Corporation (SLIC) is the primary shareholder of Litro Gas Lanka Limited with 99.94% shareholding.

The impact of a LPG price hike will reflect across the board with low and middle income groups having to bear the brunt of it as a range of food items, from the ordinary man’s buth packet to flour-based products such as stringhoppers, roti, pittu and hoppers going up in price.

As even wayside eateries now depend on cooking gas, a price revision of food items will be inevitable, industry players said.



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SC grants leave to proceed with appeal seeking Wijepala’s removal from Parliament

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The Supreme Court yesterday granted leave to proceed with an appeal seeking a determination that Minister of Public Security Ananda Wijepala is disqualified from holding a seat in Parliament.

The order was made after the court considered an appeal petition filed by former SLPP Administrative Secretary Renuka Perera.

Perera has sought a declaration that Wijepala is not qualified to continue as a Member of Parliament on the grounds that he also serves as the President’s Chief of Staff.

The petitioner contends that the position of Chief of Staff constitutes an office that disqualifies its holder from remaining a Member of Parliament under the provisions of the Constitution.

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Woman killed, 10 others injured in multiple-vehicle collisions

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A woman was killed and 10 others were hospitalised following a multiple-vehicle collision at Molagoda, Kegalle, yesterday.

The accident occurred around 11.15 am when a private bus collided with several other vehicles, in a chain-crash involving about seven vehicles.

The injured were rushed to hospital. Police said several of the vehicles involved in the accident belonged to a driver training school.

Police have launched an investigation to determine the cause of the accident.

by Norman Palihawadane

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Special police probe launched to identify jailers allegedly aiding underworld figure ‘Commando Salintha’

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Commando Salintha

A special police investigation has been launched to identify prison officers allegedly providing assistance to notorious organised crime figure Salintha Madushan Perera, alias ‘Commando Salintha’, who is currently being held at the Boossa High Security Prison, police and prison sources said yesterday.

Investigators are probing allegations that several prison officers have helped the inmate carry out activities from within the prison, including the use of mobile phones to coordinate illegal operations.

The investigation follows a recent search operation conducted by the Police STF at the Boossa Prison, during which several mobile phones, allegedly in Salintha’s possession, were recovered.

Authorities are also looking into allegations that a senior prison official attempted to destroy evidence by deleting information stored on the seized devices following the detection.

Investigators are further examining an incident in which a letter, allegedly written by Salintha to underworld figure Kanjipani Imran, was intercepted by prison officials after it had been handed over to Salintha’s mother during a visit. The letter reportedly contained details of alleged future plans and drug trafficking activities.

The latest investigation comes amid previous concerns over inmates operating criminal networks from within the Boossa High Security Prison. Nine high-profile prisoners, including Samantha Kumara Vithanage, alias  ‘Wele Suda’; Nedungoda Nirmala Prasanna, alias ‘Backhoe Saman’; and Chaminda Ravi Jayanath, alias ‘Dematagoda Chaminda’;  were previously transferred to a high-security facility at the Welisara Naval Base after information emerged that they had allegedly continued directing criminal activities and drug operations while behind bars.

Prison officials have called for swift action against any officers found to have granted special privileges, or protection, to drug traffickers and organised criminals, within the prison system.

by Norman Palihawadane and Chaminda Silva

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