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Will ‘changing pillows’ help Litro Gas to tide over billions of rupees in losses?

Published

5 years ago

2021/07/18

Sahan Weerasooriya

With soaring global LPG prices

By Suresh Perera

The appointment of a new Chairman to Litro Gas Lanka Limited has raised questions over whether “changing pillows” could help the government-owned enterprise that dominates Sri Lanka’s Liquid Petroleum Gas (LPG) industry to recoup Rs. 3 billion (Rs. 3,000 million) in accumulated losses over the past few months

“We are grappling with around Rs. 40 million in losses per day”, a senior Litro Gas official complained.

It has boiled down to a situation, where the company has to sell LPG below the procurement price by throwing in an involuntary ‘subsidy’ Rs. 700 for every 12.5kg cylinder of cooking gas sold in the market, he said.

With earnings and savings fast running out, it’s difficult to imagine how Litro Gas will be able to continue operations without a price revision, he remarked.

Amidst the crisis faced by Sri Lanka’s biggest importer and supplier of LPG, the government named Theshara Jayasinghe, former Chairman of National Youth Services Council as the new head of Litro Gas Lanka Limited.

He replaced Anil Koswatte, a sales and marketing professional and a leading entrepreneur, who founded ‘Lakarcade’, Asia’s biggest novelty gift and souvenir chain.

It was an unceremonious exit for Koswatte, who officials acknowledged, “did his utmost under difficult circumstances as the spike in international LPG prices was beyond him”.

Koswatte came under flak at one time for purportedly drawing a monthly remuneration of Rs. 3 million – Rs. 2 million from Litro Gas Lanka and Rs. 1 million from Litro Terminals Lanka Limited.

Declining to either confirm or deny that he he was paid a seven-figure salary, he told The Sunday Island at the time that his remuneration was a matter for the shareholders of the company to determine.

If Koswatte drew Rs. 3 million as his monthly salary, then his successor will also be entitled to the same privilege unless decided otherwise, officials pointed out.

Litro Gas Lanka is wholly owned by the Sri Lanka Insurance Corporation.

The Consumer Affairs Authority (CAA) has so far declined to give the nod to an appeal by Litro Gas for a Rs. 700 price increase per 12.5kg domestic LPG cylinder, they said.

At a time global LPG prices have soared, appointing a new Chairman to Litro Gas cannot be expected to make a revolutionary change, industry players pointed out.

“Whatever name there is to a face delegated to run the business, the reality is that the surge in international gas prices, coupled with the appreciation of the US dollar, has made procurement increasingly costly”, they said.

The bitter truth is that local LPG prices will have to be adjusted accordingly to sustain imports and keep the company (importer) afloat, they continued.

Asked about procurement prices, Janaka Pathirathna, Director, Sales, Marketing and Corporate Affairs of Litro Gas Lanka, said that global pricing has shot up to US$ 600 per metric tonne.

He said that the price is expected to remain high till December this year as the demand for LPG has picked up again with the world’s industrial sector resuming operations following the improvement in the Covid-19 pandemic situation.

He said that Sri Lanka procures LPG from a government-owned company in Oman at prevailing global market prices.

Meanwhile, the CAA’s Executive Director, Thushan Gunawardena said there is still no decision on revising the price of gas. Both Litro and Laugfs Gas have sought a Rs. 700 increase per 12.5kg domestic cylinder.

On the launch of the controversial 18-litre cylinders, he said the CAA Council is now examining the matter for follow-up action after a report is submitted.

He said the regulatory body has also come across issues relating to the use of gelatine in certain yoghurts, creamers instead of fresh milk in milk powder and a high alkaline level in bath soaps.

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Three arrested with narcotics valued at Rs123 million at BIA

Published

11 hours ago

2026/01/25

Priyan

Three Sri Lankan male passengers who arrived from Muscat by flight no. OV 437 on Saturday (24) have been arrested by officers attached to the NCU at BIA as they were found to be carrying 12,306 grams of Cannabis class narcotics (suspected as Hashish & Kush) valued at 123 million rupees.

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Navy intercepts 02 narcotics-laden trawlers with 11 suspects in southern seas

Published

13 hours ago

2026/01/25

Priyan

Building on its success in seizing major narcotic stocks in 2025, the Navy continued to support the “A Nation United” National Mission in 2026. In continuation of these efforts, during an
operation conducted on the high seas south of Sri Lanka, the Navy apprehended eleven (11) suspects aboard two local multi-day fishing trawlers suspected of drug smuggling.

Based on shared information, by the Sri Lanka Navy and Police, this special operation was conducted off the southern coast, deploying the Navy‟s Offshore Patrol Vessels. The operation
resulted in the interception of a multi-day fishing trawler suspected of smuggling narcotics, and the apprehension of five (05) suspects on board.

During further operations in the same area, naval units seized another multi-day fishing trawler (01), along with communication equipment and six (06) additional suspects, also believed to be involved in drug smuggling.

This morning (25 Jan 26), the two intercepted fishing trawlers, along with fourteen (14) sacks laden with suspected narcotics and the suspects, were brought to the Dikovita Fisheries Harbour.

An expert examination by the Police Narcotic Bureau confirmed that the fourteen (14) sacks contained more than 184 kilograms of heroin and over 112 kilograms of ‘Ice’ (crystal methamphetamine).

The Deputy Minister of Defence, Major General (Retd) Aruna Jayasekara, the Commander of the Navy, Vice Admiral Kanchana Banagoda, and the Inspector General of Police, Priyantha Weerasuriya, inspected the narcotics at the Dikovita harbour.

The Deputy Minister of Defence said that the current administration has initiated several projects for national development. As a flagship initiative, under the directives and guidance of the President, and under the supervision of the
Ministry of Defence, well-coordinated anti-narcotic raids have been launched.

This effort, part of “A Nation United” National Mission, involves the tri-forces, police, and all intelligence agencies working together under a coordinated plan to ensure that drug smugglers have no opportunity to bring narcotics into the country, he opined. He further stated that despite the national disaster situation, the state machinery, including the tri-forces, the police, and the public at large, remains united in rebuilding the nation, no room will be left for drug trafficking, which poses a severe threat to national security and public safety. Those
who engage in or support drug trafficking, under the cover of fishing activities, will find no escape, he added.

The Deputy Minister also reaffirmed that the tri-forces, police, and all law enforcement agencies are fully committed to their duty of suppressing this menace.

The Deputy Minister of Defence reported that, throughout 2025, a series of highly successful operations were conducted leading to numerous arrests. This was achieved through close coordination and mutual cooperation among the tri-services, the police, the Special Task Force, Police Narcotics Bureau, local law enforcement and international agencies. He noted that this
same spirit of cooperation and commitment has continued into 2026, resulting in the seizure of a large stockpile of drugs.

On behalf of the Honourable President, he extended gratitude to all who contributed to these efforts, specifically acknowledging the Commander of the Navy, the Inspector General of Police, the Police Narcotic Bureau, and the crews of the Navy’s Offshore
Patrol Vessels.

Moreover, the Deputy Minister declared that drug smuggling has become a national crisis, fueled by youth involvement and social crime. With borders secured under the “Nation United” National Mission, he warned traffickers to cease operations and urged users to abandon the destructive habit.

The Deputy Minister urged the public to report suspected drug smugglers to law enforcement via the hotlines 1818 or 1997 and also commended the role of media institutions and journalists in raising public awareness about the dangers of narcotics through responsible reporting.

Meanwhile, the two (02) multi-day fishing trawlers, along with a haul of narcotics, eleven (11) suspects, and communication equipment, were handed over to the Police Narcotic Bureau for
further investigation and legal proceedings.

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Indonesian Naval Ship ‘KRI SULTAN ISKANDAR MUDA – 367’ departs island

Published

15 hours ago

2026/01/25

Priyan

The Indonesian Naval Ship ‘KRI SULTAN ISKANDAR MUDA – 367’, which arrived in Sri Lanka for logistics replenishment and a goodwill mission, departed the island on 23 Jan 26.

The Sri Lanka Navy bade a customary farewell to the departing ship at the Port of Colombo, following naval traditions.

During the stay in Sri Lanka, crew members of the ship visited some popular tourist destinations within the city of Colomb