Business

Don’t allow Litro to become a sinking SOE: Watchdog

Published

5 years ago

2021/09/20

BY SANATH NANAYAKKARE

An organisation set up for making sure that Litro Gas conducts its operations and business in a viable and profitable manner fears that an impending reform strategy would compromise the Company’s capacity to turn around as a profitable State-Owned Enterprise (SOE).

Litro Surakime Jathika Ekamuthuwa (LSJE) or Litro Surakeeme National Unity, a collective of employees and members of civil society seeking to preserve the organisation, argues that Litro is well poised to compete with any multinational counterpart especially with its state-of-the-art bunkering facility in Kerawalapitiya with a capacity of 8,000 MT which can singlehandedly cater to the total national demand due to the efficiency in terms of management and operations.

“On a monthly basis, Litro’s bunkering facility handles approximately 35,000 MT of LPG and provides direct employment to over 225 personnel. The organization remains one of the greatest contributors to the local economy with an annual turnover exceeding Rs.50 billion. Litro also pays Rs.13 billion in dividends and Rs.34 billion in tax. However, by keeping the price of a domestic LPG cylinder at a minimum price between October 2019 & August 2021, Litro has suffered approximately Rs.8.5 billion in losses,” they say.

They further said: “Litro’s current crisis is two-fold: 1) Litro to incur further losses due to price of a cylinder not being determined by market forces. 2) Litro’s control to be handed over to Laugfs Holdings as per the recommendation of parliamentary subcommittee.”

“Experts cite both scenarios as being injurious to the organisation. Under recommendation 1 of parliamentary subcommittee report dated 27th of June 2021 price of a 12.5kg domestic LPG cylinder was fixed at Rs.1493. However, on 13th of August 2021 the Consumer Affairs Authority approved a price hike of Rs.363 for Laugfs cylinders only. Due to such provisions not being afforded to Litro Gas which is the largest player with 80% market share, the SOE currently absorbs a loss of Rs.847 per cylinder amounting to Rs.80mn a day and Rs.2.2bn per month.”

“They call to question the intentions and integrity of recently formed LPG buying firm Siyolit (Pvt) Ltd headed by Susantha de Silva as CEO/Chairman. It has been observed that the Directorate of this firm is lopsided with two directors being allocated to Laugfs which has a 20% market share while Litro, with over 80% market share, only being allocated three directors.”

“Further, Siyolit (Pvt) Ltd insists on buying from Litro only via Laugfs’ bunkering facility which necessitates transporting LPG from Litro’s facility in Kerawalapitiya to Hambantota by sea. Litro is compelled to obtain the necessary infrastructure for this process from Laugfs at an additional cost. Litro’s bunkering facility in Kerawalapitiya was built following comprehensive feasibility studies favoring the demand from the western province which amounts to 60% out of total requirement. It is feared that these myopic proposals may render the Kerawalapitiya facility, which is a national asset, obsolete in the long run due to underutilization.”

“As per Cabinet recommendations, a committee has been appointed to look into restructuring of the LPG industry for a trial period of six months. Many recommendations slated to be implemented by the committee, however, disproportionately disadvantage Litro. This may result in stifling investor confidence, raise issues regarding transparency and impact the per unit cost due to added overheads. It is feared that the outcome of this ‘restructuring’ would cause for Laugfs to thrive and Litro to inevitably shrink due to neglect and/or overt interference.””Taking the above into account we seek a sustainable solution to the crisis faced by Litro without infringing on its independence which has proved to have augured well for the organization prior to its downturn in 2019.”

“The real motivation behind seeking to make cash-rich Litro with 80% market share in LPG sector dependent on the competitor with only 20% share is a cause for concern as Litro has the capacity to not just recover itself but also to manage the competitor’s infrastructure profitably bailing out the institutions which financed this endeavor thereby,” they say.

The co-signatories to the above statement were President – A K Nalin Samantha, Secretary – J A D S Ternace Appuhamy, Treasurer – A P G S Jayakody – officebearers of ‘Litro Surakime Jathika Ekamuthuwa’.

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Business

Sri Lanka secures IMF staff-level deal for USD 700 million tranche

Published

14 hours ago

2026/04/10

Thilina Walpola

Sri Lanka has reached a staff-level agreement with the International Monetary Fund to secure the next tranche of funding under its ongoing bailout programme, marking a key step in the country’s fragile economic recovery.

The agreement, announced this week, will enable Sri Lanka to access approximately USD 700 million, subject to approval by the IMF Executive Board. The funds form part of the USD 2.9 billion Extended Fund Facility (EFF) programme agreed following the 2022 economic crisis.

The latest development covers the combined fifth and sixth reviews of Sri Lanka’s reform programme, indicating that the country has made sufficient progress to move forward, while highlighting the need to sustain reform efforts.

Sri Lanka’s economy has shown signs of stabilisation in recent months, supported by improved revenue collection, easing inflation, and a gradual buildup of foreign reserves. However, the recovery remains vulnerable to both domestic and external pressures.

By Ifham Nizam

Business

Israeli attack on Lebanon triggers local stock market volatility

Published

14 hours ago

2026/04/10

Thilina Walpola

Initially CSE trading was somewhat volatile despite the ceasefire in West Asia but it experienced further volatility after Israel attacked Lebanon yesterday.

However, the IMF delegation which is now in Sri Lanka to release two tranches of its relief package created some positive sentiments for the market, analysts said.

The All Share Price Index went down by 73.06 points, while the S and P SL20 rose by 10.57 points.

Turnover stood at Rs 2.96 billion with six crossings. Those crossings were: JKH 5.5 million shares crossed to the tune of Rs 807.6 million and its shares traded at Rs 19.70, CIC Holdings two million shares crossed for Rs 54 million; its shares traded at Rs 32, Access Engineering 600,000 shares crossed for Rs 44.4 million; its shares traded at Rs 74, Central Finance 116,000 shares crossed to the tune of Rs 27.5 million ; its shares sold at Rs 237, LMF 250,000 shares crossed for Rs 22.8 million; its shares fetched Rs 91.10 and Kelani Cables 200,000 shares crossed for Rs 21 million and its shares traded at Rs 105.

In the retail market seven companies that mainly contributed to the turnover were; Dialog Rs237 million (7.5 million shares traded), LMF Rs 203 million (22 million shares traded), Colombo Dockyard Rs 199.7 million (1.1 million shares traded), HBA Foods Rs 163 million (18.5 million shares traded), JKH Rs 156 million (7.8 million shares traded), JKH Rs 156 million (7.8 million shares traded), Softlogic Holdings Rs 117 million (9.6 million shares traded) and Acme Printers Rs 107 million (15.6 million shares traded). During the day 133.3 million share volumes changed hands in 23666 transactions.

It is said that manufacturing sector counters, like JKH, performed well, while food sector counters, especially LMF and HBA Foods, performed well. Other sectors too performed somewhat well during the day.

Yesterday the rupee was quoted a Rs 315.42/48 to the US dollar in the spot market from 315.30/40 the previous day, dealers said, while bond yields were quoted higher.

By Hiran H. Senewiratne

Business

HNB Assurance marks 25 years with strategic transformation to ‘HNB Life’

Published

14 hours ago

2026/04/10

Thilina Walpola

Highlights from the new brand reveal as HNB Assurance transforms into HNB Life

Marking 25 years of trust, growth, and service excellence, HNB Assurance PLC has unveiled its new corporate identity, transitioning to HNB Life PLC a strategic evolution that reflects the company’s forward-looking vision and commitment to empowering lives with protection and the freedom to thrive, no matter where life takes them.

This milestone signifies more than a change in name or visual identity. It represents a deliberate transformation shaped by strong performance over the past few years, during which the company has achieved remarkable growth, strengthened its market position and enhanced its customer-centric capabilities.

The newly introduced logo, inspired by the form of a wing, symbolises HNB Life’s role as a proactive enabler. It reflects the organisation’s commitment to supporting individuals in navigating life’s journey with confidence, empowering them to pursue their aspirations and live life on their own terms.

The official unveiling took place at a launch event attended by key stakeholders, strategic business partners, well-wishers and employees.

Addressing the gathering, Chairman, Stuart Chapman highlighted the significance of this transformation, stating, “As we mark 25 years of progress, the transition to HNB Life reflects our strategic intent to evolve with the changing needs of our customers and the broader market. This new identity embodies our purpose, to enable and empower individuals to achieve what they truly aspire to in life, with confidence and security. As a company we are extremely excited on what the future holds for as, as we build on an incredible foundation laid over the past two and a half decades.”

The new Vision of the Company is “To be the leader in empowering lives with protection and freedom to thrive, no matter where life takes them”.