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Litro allowed to market its controversial hybrid LPG cylinders despite CAA’s objections

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by Suresh Perera

In what industry players summed up as an “incredulous about-turn”, the trade authorities have given the green light to Litro Gas Lanka to market its controversial 18-litre premium hybrid domestic LPG cylinders at its original introductory price, despite strong objections by the Consumer Affairs Authority (CAA).

The launch of the new domestic cylinders triggered protests by consumers and interest groups as a 12.5-kilogram Litro cooking gas cylinder is sold for Rs. 1,493 in the market, whereas the 9.18 kilogram product has been priced at Rs. 1,395 in spite of the weight being reduced by three kilograms.

In other words, consumers are offered a regular 12.5-kilogram cylinder at Rs. 1,493, but for a mere one hundred rupees less, they have to be content with 9.18 kilograms of cooking gas at Rs. 1,395, industry officials said.

The weight has been given in litres instead of kilograms, as done on regular 12.5kg domestic cylinders, to deceive the public, they asserted.

State Minister of Co-operative Services, Marketing Development and Consumer Protection, Lasantha Alagiyawanna, conceded that Litro Gas has reduced the weight of its new hybrid cylinders introduced to the market and the public has to incur a financial loss as a result.

“We will be asking the CAA to inform Litro Gas to mark the weight in kilograms on the new cylinders and not in litres”, the State Minister told a news conference held at the Ministry on April 24.

It was also pointed out that a different color should be used so that consumers will be able to differentiate between the two products. Otherwise, it could lead to confusion as there’s a difference in weight between them.

“We have asked Litro Gas to withdraw the new cylinders from the market”, Asela Bandara, CAA’s Director of Information, told the media.

Litro had injected the new hybrid cylinders into the marketplace without the permission of the CAA, he said, while blaming the company’s top management for the lapse.

Warning that Litro Gas could face legal action in this regard, Bandara said the CAA has asked the company to stop distribution and withdraw existing stocks from the market.

However, at a meeting on Tuesday evening, State Minister Alagiyawanna gave the go-ahead to Litro to sell the new cooking gas cylinders at the introductory price.

Despite his admission earlier that the public will suffer a financial loss due to the difference in weight, the coast is now clear for the company to market its newly introduced product at the original price of Rs. 1,395, industry officials said.

“The color of the cylinders is bound to change but not the weight”, they said.

Referring to the meeting between the State Minister and Litro officials, the company said in a statement that it was decided “to ensure that 12.5kg cylinders be made available to the public without a shortage”.

“In keeping with the Hon. Minister’s guidelines to provide consumer information and clarify with regard to the new Premium Hybrid 18 Litre Cylinder introduced to the market, Litro Gas Lanka hopes to implement such activities within a week, while keeping the product at the introductory price”, the company’s Chairman/CEO, Anil Koswatte, said in a statement.

Asked what “implementing such activities” meant, a Litro spokesperson declined to elaborate saying it was difficult to comment on questions raised outside the scope of the media statement.

On whether the weight of the hybrid cylinders will remain intact with a change of color merely to differentiate between the two products, she politely refused to entertain questions beyond the media statement issued by the company.

Permitting Litro Gas to market the new cylinders is unacceptable, a senior CAA official protested. “This is unprecedented — it is a fraud perpetrated on consumers”.

The CAA’s letter to Litro asking it to withdraw the new LPG cylinders still stands, he stressed. “The company has violated Section 10 of the Consumer Protection Act and is liable for prosecution”.

“This is a daylight robbery. The State Minister may have granted approval, but the CAA cannot allow consumers to be fleeced through such gimmicks”, he underscored.

When it comes to a grocery store or a supermarket, legal action is filed immediately even if a label of a product is found tampered with. The law cannot be applied selectively, he said.

Small-timers are penalized for violating consumer laws, but when it comes to big companies, they use their clout to wriggle out of the situation”, the official said.

Litro has been told to use a different color to facilitate identification. What will be position if the company decides to change the color of its 12.5kg cylinders? For example, if there are one million cylinders and if 400,000 are initially withdrawn for re-painting, the shortfall will force consumers to buy the new 18-litre ones, he continued.

Technically, there won’t be a dearth of LPG in the market. However, the public will have no option but to buy the 9.18kg cylinders instead of the 12.5kg ones, he said.

“It will be a Hobson’s choice”.

However, the State Minister said Litro Gas was allowed to sell the new cylinders at the introductory price subject to certain conditions. The company should primarily ensure that there’s no shortage of cooking gas in the market.

With the spike in global LPG prices, Litro Gas Lanka has already suffered billions of rupees in losses as the green light to push up the price of cooking gas in the local market was not forthcoming.

The government has resisted consistent demands for a price increase of Rs. 700 per 12.5kg domestic cylinder as it would reflect adversely on the soaring cost of living. However, as a concessionary measure of relief to Litro Gas, the Finance Ministry made an adjustment to the 7.5% Ports and Airport Development Levy.

Asked how the levy works out, a Litro spokesperson promised to check back with the finance division and convey the information. She called back later to say that the finance director wanted The Sunday Island to refer the gazette as it’s a government decision!

However, Litro’s Director of Corporate Affairs, Janaka Pathiratne, said that concessions on levies are insignificant when it comes to a mass scale LPG business that’s incurring Rs. 300 to 400 million in losses per day.

The only solution is to increase the price of a domestic LPG cylinder by Rs. 700, he pointed out. “That’s the way out of the financial crisis”.

The new hybrid 18-litre domestic cylinder was introduced to the market to cut losses as LPG is now sold below procurement cost, sources said.



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Senior citizens above 70 years to receive March allowances on Thursday (26)

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The Welfare Benefits Board has announced that the March allowance for senior citizens over 70 years of age will be credited to each beneficiaries account on Thursday (26th).

693,801 senior citizens over the age of 70 years are set to benifit under this welfare scheme

 

 

 

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CEB Engineers warn public to be prepared for power cuts after New Year

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A looming power crisis is casting an ominous shadow over the country, with engineers warning that the current “no power cut” situation may not last beyond the Sinhala and Tamil New Year due to worsening diesel shortages and ongoing coal-related disruptions.

A senior electrical engineer, attached to the Ceylon Electricity Board Engineers Union, cautioned that while authorities appear to be managing the system for now, the underlying fuel constraints are reaching a critical point.

He told The Island: “At the moment, there are no scheduled power cuts across the country. But this is being maintained under significant strain. With the diesel shortage and unresolved coal issues, sustaining uninterrupted supply, beyond the New Year period, will be extremely challenging.”

The engineer noted that thermal power generation — particularly diesel-based plants — has become increasingly difficult to sustain due to limited fuel stocks and logistical bottlenecks. At the same time, the substandard quality coal supply issues that have plagued recent shipments continue to undermine the efficiency of base-load generation.

“We are stretching available resources to avoid immediate outages. owever, unless there is a rapid improvement in fuel availability, the system will be forced into load shedding soon after the New Year,” he warned.

According to him, authorities are likely to delay any scheduled outages until after the festive season to avoid public backlash and economic disruption during a traditionally sensitive period.

“Most probably, they will try to continue like this until the New Year. But after that, daytime or peak-time load shedding becomes almost inevitable if the situation remains unchanged,” he added.

Energy analysts say the warning reflects a deeper structural vulnerability within the power sector, where over-reliance on imported fossil fuels — particularly diesel and coal — continues to expose the system to external shocks and procurement failures.

The recent use of substandard coal has already resulted in reduced generation capacity at the country’s sole coal power plant at Norochcholai, compounding the pressure on thermal plants to bridge the shortfall. Engineers say this has forced operators to depend more heavily on costly diesel generation — an option now constrained by supply shortages.

Industry sources indicate that demand is also on the rise, particularly during night peak hours, possibly driven by increased reliance on electricity for cooking, amid gas shortages, further tightening the supply-demand balance.

Despite the absence of official announcements, insiders suggest contingency planning for load shedding is already underway.

“If the fuel situation does not improve within the next few weeks, controlled power cuts will be the only viable option to protect the grid from a total system failure,” the engineer stressed.

The warning comes at a time when the country is attempting to maintain economic stability following successive crises, with uninterrupted power supply considered critical for industry, commerce, and daily life.

However, unless urgent corrective measures are taken to secure reliable fuel supplies and stabilise generation capacity, the return of power cuts — including during daytime hours — appears increasingly unavoidable, an expert said.

By Ifham Nizam

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Japanese boost to Sri J’pura Hospital, an outright gift from Tokyo during JRJ rule

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Japanese Ambassador to Colombo, Akio Isomata, on 24 March, handed over the newly established dental unit and 4D Angio CT suite at Sri Jayewardenepura General Hospital. Health Minister Dr. Nalinda Jayatissa and other senior officials from the Ministry of Health and the hospital attended the event.

Highlighting the strong partnership between Japan and Sri Lanka in the health sector, the Embassy issued the following press release yesterday: “This handover marks the second phase of the project, following the initial provision of ophthalmic equipment in December 2023. The current phase represents a significant milestone, featuring the introduction of a state-of-the-art CT Angiography system – the first of its kind in South Asia – as well as dental units. These contributions are expected to enhance Sri Lanka’s capacity to address non-communicable diseases (NCDs), including cancer, stroke, and diabetes, thereby saving lives, reducing long-term complications, and improving the quality of life of patients.

The CT Angiography system integrates CT scanning and angiography functions, enabling highly accurate and timely diagnosis and treatment. It is expected to further strengthen the hospital’s role as a key medical hub in Sri Lanka and the wider region.

In addition, the provision of 10 dental units will support the establishment and enhancement of dental services at the hospital. In Japan, oral health is considered closely linked to overall health and plays an important role in extending healthy life expectancy. This support is, therefore, also expected to contribute to the promotion of preventive healthcare in Sri Lanka.

The Sri Jayewardenepura General Hospital was constructed in 1984 with grant assistance from the Government of Japan. The well-known “1001-bed” story—originating from former President J.R. Jayewardene’s remark to add one more bed to the originally planned 1,000—remains a memorable episode reflecting the history of this cooperation.

Japan has consistently supported Sri Lanka’s health sector over the decades, including the development of medical facilities, strengthening of blood supply systems, and support during the COVID-19 pandemic through vaccine delivery assistance. Furthermore, during Sri Lanka’s recent economic crisis, Japan provided fuel essential for maintaining healthcare services, and in times of natural disasters, dispatched emergency medical teams to deliver urgent care. These efforts demonstrate Japan’s continued commitment to standing by Sri Lanka, especially in times of need. These efforts reflect Japan’s commitment to “investment in people” and “human security,” supporting a healthcare system in which all individuals can live healthy and dignified lives.

Japanese Ambassador Isomata with Minister Dr Jayatissa and officials (pic courtesy Japanese Embassy)

Ambassador Isomata remarked, “This support is not merely for the provision of equipment, but also for the consolidation of the foundation for safeguarding lives and livelihoods. Sri Jayewardenepura General Hospital, built with the support of Japan, stands as a symbol of the longstanding friendship between our two countries. We sincerely hope that this project will contribute to building a sustainable healthcare system that benefits future generations in the field of medicine and further strengthen our partnership.”

Minister Jayatissa highlighted,” This is not just a donation of machines. It is an investment in the lives and futures of our patients. By establishing this modern dental unit, we are addressing a critical need in the prevention and treatment of oral diseases for our population. I wish to express our deepest gratitude to the Government and people of Japan for this generous assistance. These are acts of true friendship, and the people of Sri Lanka will always remember them with gratitude.”

Japan will continue to work closely with Sri Lanka to further strengthen the healthcare sector and deepen the longstanding friendship between the two countries.”

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