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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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Suspended Parliament official to move Court of Appeal, seek international intervention

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Chamindra and Dr. Jagath

Chamindra Kularatne, the suspended Deputy Secretary General of Parliament and Chief of Staff, has told the Opposition that he will seek the intervention of the Inter-Parliamentary Union (IPU), Commonwealth Parliamentary Association (CPA), Association of Secretaries General of Parliament (ASGP) and the United Nations Human Rights Council (UNHRC).

Kularatne has also declared his intention to move the Court of Appeal against the suspension that came into effect on 23 January on the basis of an inquiry conducted by retired Additional Secretary S.K. Liyanage.

The inquiry found fault with Kularatne for receiving a pension for a three-year and seven-month period he served as the Secretary to the Chief Government Whip during the previous administration. However, political sources said that though that particular appointment had been on a contract basis, in terms of a gazette issued at that time, it was made pensionable. Therefore, there couldn’t have been any issue with regard to Kularatne receiving a pension as stipulated in the gazette, sources said. The Island learns that Public Administration, Provincial Councils and Local Government Ministry advised that the Cabinet of Ministers be consulted regarding the matter but the Parliament acted even without bothering to seek Kularatne’s explanation.

The Staff Advisory Committee (SAC), chaired by Speaker Dr. Jagath Wickremaratne, has initiated the inquiry, though such an action should have been the prerogative of the Secretary General of Parliament, Kushani Rohanadeera, sources familiar with the developments relating to the unprecedented case, said. The SAC has also disregarded stipulation that in case of an inquiry against the Deputy Secretary General of Parliament, it should have been conducted by an officer senior to him.

The SAC consists of the Speaker, Chief Government Whip Bimal Rathnayake, Deputy Finance Minister Prof. Anil Jayantha (he represents President Anura Kumara Dissanayake who also holds the Finance portfolio) and Opposition Leader Sajith Premadasa/Chief Opposition Whip Gayantha Karunatilleke. Sources said that the SAC had been deeply divided over the decision, with SJB Karunatilleke expressing opposition to the course of action proposed by the Speaker, while Prof. Jayantha didn’t extend his support. Before Kularatne had been informed of the SAC decision on 23 January, he wasn’t given an opportunity to respond to whatever allegations directed at him, sources said.

Kularatne’s complaint to IPU would be the second against Speaker Dr. Wickremaratne since his appointment as the Speaker on 17 December, 2024. The first complaint has been lodged by Jaffna District independent group member Ramanathan Archuna. Parliament accepted the NPP’s proposal to appoint the Polonnaruwa District lawmaker after their first choice Asoka Ranwala resigned after being exposed for false claims of his higher educational qualifications.

Sources said that the ruling party had targeted Kularatne because an influential section, within the government, believed that he had sneaked on the Speaker. Kularatne’s sacking and related accusations and counter accusations dominated social media.

Opposition Leader Sajith Premadasa and ITAK Batticaloa District lawmaker Shanakiyan Rasamanickam threw their weight behind Kularatne with Premadasa questioning the legality of the action taken without seeking an explanation from the official.

Authoritative sources said that in terms of the Parliament (Powers and Privileges) Act, in addition to members of Parliament, officials, too, received protection.

During the United National Front government of Prime Minister Ranil Wickremesinghe, the then Speaker, the late W.J. M. Lokubandara, interdicted Director General (Administration) Lacille de Silva over alleged misconduct though the official claimed he was punished for leaking information. Lacille de Silva successfully moved court against his interdiction and secured his position.

By Shamindra Ferdinando

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Sri Lanka, UAE review energy cooperation; Trincomalee hub plans discussed

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Abassador of the United Arab Emirates (UAE) to Sri Lanka, Khaled Nasser Al Ameri, with Minister of Power and Energy Eng. Kumara Jayakody

The Ambassador of the United Arab Emirates (UAE) to Sri Lanka, Khaled Nasser Al Ameri, met Minister of Power and Energy Eng. Kumara Jayakody yesterday (26) to review progress on bilateral energy cooperation and explore new avenues for collaboration, with a strong focus on regional energy security and strategic infrastructure development.

The high-level discussion centred on the implementation status of understandings reached in recent years, particularly in the energy sector, and on identifying fresh opportunities to deepen engagement between Sri Lanka and the UAE. Both sides underscored the importance of translating earlier agreements into tangible outcomes amid Sri Lanka’s ongoing energy transition.

A key focus of the talks was the proposed development of the Trincomalee region as a regional energy hub. The meeting reviewed follow-up actions related to the tripartite Memorandum of Understanding signed last year between Sri Lanka, India and the UAE, which envisages collaborative development of energy-related infrastructure and logistics in and around Trincomalee, leveraging its strategic location in the Indian Ocean.

Officials discussed the next steps required to operationalise elements of the agreement, including coordination mechanisms, investment frameworks and timelines, with a view to positioning Trincomalee as a focal point for energy storage, supply and distribution in the region.

The discussions also addressed broader cooperation on regional energy security, with both parties acknowledging the growing importance of resilient, diversified and sustainable energy systems amid global volatility.

The UAE reiterated its willingness to support Sri Lanka’s energy objectives, including through technical expertise, investment and strategic partnerships aligned with the country’s long-term power sector goals.

Minister Jayakody highlighted Sri Lanka’s commitment to strengthening international partnerships to ensure energy security, accelerate infrastructure development and support the shift towards a more reliable and future-ready energy mix.

Ambassador Al Ameri reaffirmed the UAE’s interest in expanding its role as a key partner in Sri Lanka’s energy sector, building on existing goodwill and cooperation.

The meeting reflects Colombo’s broader diplomatic and economic efforts to attract strategic partners to its energy sector, particularly for large-scale projects with regional significance, as Sri Lanka seeks to stabilise supply, enhance security and position itself as an emerging energy and logistics hub in the Indian Ocean, the Ministry said.

By Ifham Nizam

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Pathfinder Foundation inaugurates a repository for Sri Lanka’s peace initiatives

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The Pathfinder Foundation’s Repository for Sri Lanka Peace Initiatives was inaugurated by Erik Solheim—former Norwegian Special Envoy to the Sri Lanka peace process. Milinda Moragoda, Founder Pathfinder Foundation, and Bernard Goonetilleke, Chairman of the PF, both among the principal negotiators of the peace process, seen at the event

The Pathfinder Foundation’s Repository for Sri Lanka Peace Initiatives was inaugurated by Erik Solheim—former Norwegian Special Envoy to the Sri Lanka peace process, former Minister of the Environment and International Development of Norway, and former Executive Director of the United Nations Environment Programme (UNEP)—at the invitation of Milinda Moragoda, Founder, and Bernard Goonetilleke, Chairman of the Pathfinder Foundation, both among the principal negotiators of the peace process.

Over several decades, Sri Lanka repeatedly sought to resolve the separatist conflict through negotiations. Despite several initiatives, none succeeded in bringing the conflict to a negotiated conclusion.

Over the years, numerous publications—both local and foreign—have examined Sri Lanka’s conflict. SCOPP maintained a substantial body of documentation on the peace process, from January 2002 to January 2008, and the Norwegian facilitators also hold an extensive collection of records. Nevertheless, a major gap remains: the absence of a consolidated repository that brings together available documentation on the peace process, particularly one that preserves material relating to negotiations that did not reach a conclusive settlement.

Responding to this gap and encouraged by many associated with or studying the process, the Pathfinder Foundation has taken steps to establish a dedicated repository to collect and preserve documentation on Sri Lanka’s peace initiatives. Under this project, the Foundation will gather relevant information on the peace process from local and international sources.

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