Business

‘Litro Gas incurring heavy losses as a result of not revising prices’

Published

5 years ago

2021/10/8

By Hiran H.Senewiratne

Litro Gas is now in a position to refill and distribute Laugfs LPG gas cylinders provided proper legal clearance is made. Litro Gas is incurring heavy losses and is about to exhaust its reserves, because it has not revised its prices despite the high world market price, a senior gas industry source said.

“Litro Gas now has an over 80 percent market share in the domestic gas market and if requested could meet the total demand of LPG cylinders. There is no major technical/safety issue in refilling/ crossing filling Laugfs with Litro. However, there is a legal issue as the Laugfs cylinder is not our property, the source said.

“Litro has grown its strength and could easily move in to fulfill the total domestic LPG gas requirement, president, LP Gas Distributors Association Sathyendra Wijayapura told the Island Financial Review.

Wijayapura added: “Our association could take over Litro Gas Company by investing in it to supply gas in an uninterrupted manner in keeping with Litro’s former multinational company, Shell’s, business model. We have funds to invest in Litro Gas but also need to import another 150,000 cylinders to manage operations.

“Laugfs Gas commenced operations 20 years ago, initially as an auto gas alternative before moving in to

LPG. Today, the heavily debt- ridden company owns tankers and a large LPG storage facility at Hambantota, widely seen globally as a non-performing asset, but finds itself at the center of controversy, brought on by the fact that the common platform recommended for the LPG industry is allegedly favouring Laugfs.

“Laugfs was also given approval to increase the price of domestic gas with the Consumer Affairs Authority approving the price of a Laugfs 12.5kg cylinder to be increased. But Litro Gas has not revised its prices for the last two years and when the Litro Gas price was revised two years ago one metric ton of gas cost US $ 350 and now it has increased to US $ 800 in the international market.

“Therefore, Litro Gas Company is making operational losses due to the LPG price hike in the global market. However, as a responsible company it is not out to put additional pressure on the public and would not look for an immediate price hike.

“Subsequently, Laugfs Gas Chief Executive Chaminda Ediriwickreme was quoted as saying that they have placed an order for a shipment and expect to re-start operations in a small way on August 20. However, this is yet to be a reality.

“We also want to say that it’s not practical to merge with Laugfs forming a new company and we oppose this move taking into account long- term distributing implications.

“We thank former Treasury Secretary and current Presidential Secretary Dr. P.B. Jayasundara for initiating the takeover of 51% shares of Shell Gas, who opted to move out of Sri Lanka in 2011. Dr. Jayasundara obtained these shares by taking US$ 61 million from Sri Lanka Insurance and Litro in turn paid back this amount in four years justifying this acquisition.

“To date Litro has paid a dividend of Rs. 13.5 billion and also Rs. 34 billion in tax to the government and is now about to go bankrupt and has no funds to even place the next purchasing order.

“It must be noted that 35 per cent of the customers in Sri Lanka use LPG as cooking fuel. Another 52 per cent of customers use dual fuel, one of which is LPG. For these customers and the industrial segment who rely heavily on LPG, the way forward is uncertain.”

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Business

Samagi Spice Exports to launch Ceylon Cinnamon based beverage range

Published

4 hours ago

2026/10/16

Priyan

The SPICEUP range of Cinnamon based beverages being launched by Samagi

Samagi Spice Exports (Pvt) Ltd is set to introduce SPICEUP, a new Sri Lankan beverage brand, at its grand launch on Saturday 17 October 2026 at the University of Ruhuna, Matara.

With a history dating back to 1969, Samagi Spice is taking a new step in its business journey by expanding beyond traditional spice exports into value added consumer products.

Through SPICEUP, the company aims to connect Sri Lanka’s internationally recognized cinnamon heritage with contemporary beverage innovation, creating a distinctive identity in the country’s beverage market.

The SPICEUP range will feature a variety of products, including Original, Cream Soda, Power, GO, Cool, Burn, Memo+ and Zingy. Designed to offer consumers a range of refreshment experiences, the products will be available in two packaging formats: cans and plastic bottles, catering to different consumer preferences and occasions.

At the heart of the initiative is the potential of true Ceylon cinnamon as a value-added ingredient in the beverage industry. Rather than limiting cinnamon to its traditional uses, SPICEUP seeks to explore new opportunities for bringing this iconic Sri Lankan spice into everyday consumer experiences.

The initiative also highlights the broader potential of transforming the country’s agricultural resources into innovative products with commercial value.

The launch ceremony will be attended by legendary Sri Lankan cricketer Sanath Jayasuriya as the Chief Guest, alongside representatives from the Export Development Board (EDB), Industrial Development Board (IDB), Cinnamon Research Academy and other industry stakeholders.

A major highlight of the occasion will be the official unveiling of the SPICEUP product range, followed by the launch of the brand’s official website. The event will also feature the signing of a Memorandum of Understanding (MoU) between Samagi Spice Exports and the University of Ruhuna, marking an important step towards strengthening collaboration between industry and academia.

The proposed collaboration will provide a platform for future research, product innovation and value addition involving true Ceylon cinnamon. By bringing together business expertise and university-based knowledge, the initiative aims to support the development of innovative, value-added products and contribute to Sri Lanka’s potential in international markets.

With its roots in the country’s spice industry and its ambitions in the beverage sector, SPICEUP is poised to begin a new chapter in Samagi Spice’s journey—one that seeks to bring the distinctive identity of Ceylon cinnamon to a new generation of consumers.

Business

Indian business leader urges SL entrepreneurs to tap into India’s rapidly expanding consumer market

Published

20 hours ago

2026/10/16

Thilina Walpola

T. Krishnakumar, Chief Executive Officer of Reliance Consumer Products Ltd (RCPL)

By Sanath Nanayakkare

Speaking at the Sri Lanka Economic and Investment Summit 2026, T. Krishnakumar, Chief Executive Officer of Reliance Consumer Products Ltd (RCPL), emphasised that local enterprises can unlock substantial economic benefits by strategically aligning with India’s booming consumer base.

Addressing business leaders and policymakers at the Shangri-La Hotel in Colombo, Krishnakumar highlighted that geographical proximity and rich cultural ties provide a natural foundation for deeper commercial collaboration.

He noted that instead of viewing bilateral trade narrowly, regional partnerships should act as conduits to build robust, scalable enterprises capable of plugging into wide-reaching regional value chains.

“For Sri Lankan exporters dealing in traditional staples as well as value-added goods, accessing India’s rising middle class presents a phenomenal growth window,” he said.

Drawing insights from Reliance Consumer Products’ rapid expansion – which scaled efficiently to thousands of employees and multi-billion-dollar metrics – Krishnakumar stressed that modern corporate success relies on disciplined execution, localised consumer understanding, and smart technology integration.

Furthermore, he underscored that while rapid growth is critical, businesses must consistently anchor their models in affordability and consumer trust.

Concluding his address at the summit, the RCPL chief noted that pairing regional trade integration with resilient business practices and predictable regulatory frameworks will be vital as Sri Lanka transitions firmly toward accelerated economic development.

Addressing the Summit during a subsequent fireside chat, President Anura Kumara Dissanayake underscored that a core concern currently being targeted by the government is developing a critical mass of local entrepreneurs equipped to engage with international enterprise counterparts.

Business

SriLankan Airlines wins prestigious SATA 2026 Visitors’ Choice Award for Leading International Airline

Published

20 hours ago

2026/10/16

Thilina Walpola

SriLankan Airlines has once again been honoured with the prestigious Visitors’ Choice Award for Leading International Airline at the South Asian Travel Awards (SATA) 2026, reaffirming its continued recognition in the regional travel and tourism industry. The airline, which has received this award in previous years, was the only international airline to be recognised in this category at this year’s event. The 10th anniversary edition of the awards ceremony was held earlier this month at Hotel Barcelo Nasandhura in Male, Maldives.

Recognised as one of the key events on the Maldivian tourism and travel industry calendar, SATA celebrated its 10th anniversary on a grand scale, bringing together prominent industry stakeholders, including Government Ministers, distinguished dignitaries, diplomats and senior representatives from leading airlines and their respective head offices.

Commenting on the achievement, Dimuthu Tennakoon, Head of Commercial, SriLankan Airlines, stated, “We are honoured to receive this recognition at the South Asian Travel Awards 2026. Being named the Leading International Airline in the Visitors’ Choice Awards once again is a meaningful acknowledgement of our commitment to serving our passengers and strengthening our presence in the region. This award inspires us to continue enhancing the travel experience we offer and to build stronger connections with the markets and communities we serve.”

Complementing its commitment to service excellence, SriLankan Airlines offers an extensive flight network with convenient connections to destinations across the globe. In South Asia, the airline operates nearly 130 flights each week to 15 destinations across India, Pakistan, the Maldives, Nepal, and Bangladesh. With schedules thoughtfully designed to suit the needs of travellers, SriLankan Airlines provides seamless connectivity for those visiting Colombo for business or leisure, as well as passengers travelling onwards to destinations worldwide.