News

Litro Gas grappling with billions of rupees in losses as govt. still undecided on LPG price hike

Published

4 years ago

2021/04/18

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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News

GMOA swings into action on Vithana’s disclosure of MPs’ salaries, etc.

Published

1 hour ago

2025/07/15

Sahan Weerasooriya

MP Vithana / Dr. Sugathadasa

The Government Medical Officers’ Association (GMOA) has sought an explanation from Parliament regarding how PAYE (Pay As You Earn) is applied to parliamentarians.

GMOA Secretary Dr. Prabath Sugathadasa has written to the Secretary General of Parliament, Kushani Rohanadeera, in terms of the Right to Information (RTI) Act.

Information was sought on 09 July, 2025, in the wake of Samagi Jana Balawegaya (SJB) Kalutara district parliamentarian Jagath Vithana posting his pay sheets from January to May this year on his Facebook.

In addition to information on PAYE, the GMOA has posed a number of other questions to the Secretary General regarding the parliamentarians’ salary as well as pensions.

Parliament passed the RTI Act on 24 June, 2016, and it came into effect on 03 February, 2017. This act, introduced through the 19th Amendment to the Constitution, in 2015, is meant to promote transparency and accountability in government.

New controversy has erupted in the wake of Nawa Janatha Peramuna lodging a complaint with the CIABOC seeking an investigation into Speaker Dr. Jagath Wickremaratne abusing public property, a claim denied by the Secretary General of Parliament.

According to Vithana’s May pay sheet, his monthly allowance is Rs. 54,285, entertainment allowance Rs 1,000, telephone allowance Rs 50,000, sitting allowance Rs 5,000, office allowance Rs 100,000, fuel allowance Rs 97,428.92 and transport allowance Rs. 15,000. His take home pay is Rs 317, 760.92 after the deduction of Rs 1,200 for catering, stamp duty Rs. 25 and Advance Personal Income Tax (APIT).

Asked whether he regretted the releasing of pay sheets, lawmaker Vithana told The Island that in the run-up to the last parliamentary elections, held in November 2024, he had promised the Kalutara electorate he wouldn’t draw his salary. The MP said that however, he later felt the salary should be accepted and used in support of public welfare projects undertaken by him. “Therefore, the money was used appropriately,” he said, adding that both the government and Opposition MPs reacted with resentment. “I feel sort of isolated in Parliament. Hardly anyone talks to me,” MP Vithana said.

Dr. Sugathadasa said that having perused the pay sheets posted online, the GMOA had felt the urgent need to seek a clarification from Parliament as the lawmakers appeared to have received special status. The top GMOA official emphasised they wanted to establish the truth and used the RTI law to obtain information regarding the MPs’ salaries, pensions and other related information. “The GMOA made the request on 09 July, 2025. We are confident the Parliament will answer our queries,” Dr. Sugathadasa said.

Parliament meets only eight days a month. Attendance is not compulsory and there is no fixed time for lawmakers to attend sittings. Over the years, sittings have been suspended for lack of quorum.

The Island asked the GMOA official whether they would seek the intervention of the RTI Commission in case the Parliament declined to reveal the information sought by them. Dr. Sugathadasa said that the Executive Committee of the GMOA would decide the course of action if Parliament withheld information.

A few years ago Chamara Sampath, of Wijeya Newspapers, successfully moved the Court of Appeal against the Parliament after the latter refused to disclose names of Members of Parliament (MPs) who had handed over their respective declarations of assets and liabilities in 2018 and list of names of MPs who have handed over their Declarations from 2010 to the time he made the request (21 June, 2018).

The Court on 28 February, 2023, reaffirmed the RTI Commission’s stand that Declarations of Assets and Liabilities Law of 1975 (DALL) didn’t prevail over the Right to Information Act no. 12 of 2016 (RTI Act).

According to the Parliament website, an MP is paid Rs. 54,285, entertainment allowance Rs 1,000, driver’s allowance Rs 3,500 (only if driver is not provided by government). Fuel allowances are paid based on the distance from Parliament to the electoral district which each MP was elected and the approved market price of one litre of diesel on the first day of every month, telephone allowance Rs 50,000, transport allowance for personal staff Rs 10,000, and stamps worth Rs 350,000 issued to each MP annually.

By Shamindra Ferdinando

News

Udaya alleges Prez hasn’t given up efforts to bring in outsider as AG

Published

1 hour ago

2025/07/15

Sahan Weerasooriya

Sri Lanka Educator Service Lecturers’ Trade Union yesterday (14) protested outside the Education Ministry, demanding that the government address their grievances. (Pic by Nishan S. Priyantha)

Pivithuru Hela Urumaya (PHU) leader and former Minister Udaya Gammanpila says President Anura Kumara Dissanayake has delayed making a permanent appointment to the post of Auditor General in a bid to bring in an outsider early next year.

Addressing the media yesterday (14), Attorney-at-Law Gammanpila said that three civil society members of the Constitutional Council, who opposed the President’s move, would be completing their term in early January next year. Instead of appointing Dharmapala Gammanpila as the Auditor General, the President had given him only an extension in service so as to get rid of him at the first available opportunity and bring in his crony from the Kelaniya University.

The former lawmaker said that the success of the President’s plan depended on the appointment of pliant civil society members to the CC, ready to help advance the NPP’s agenda.

News

Poaching: 24 boats, 181 Indians taken into custody so far this year

Published

1 hour ago

2025/07/15

Sahan Weerasooriya

Fishermen taken into custody

In spite of specific warnings issued by fisheries minister Ramalingam Chandrasekar to Indian poachers, trawlers are continuously crossing the Indo-Lanka maritime boundary.

Navy headquarters yesterday (14) said that so far this year they have detained 24 Indian fishing boats and taken into custody 181 fishermen for poaching in Sri Lankan waters. The arrested included seven taken off the Delft Island, Jaffna in the early hours of Sunday.

Navy headquarters spokesman said that operations were conducted taking into account the harmful impact of prohibited fishing practices such as bottom trawling resorted to by Indian poachers, on the livelihood of local fishermen.

Having observed Indian fishing boats off Delft, the Northern Naval Command deployed its craft to drive away those Indian fishing boats from island waters, off the Delft Island.

The detained boat and Indian fishermen were brought to the Kankasanthurai Harbour and handed over to the Fisheries Inspector of Mailadi, Jaffna for legal proceedings.