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.
Prez to unveil plan on 13 A
SJB, SLPP rebels to boycott opening of new parliamentary session
By Saman Indrajith
The main Opposition party, the SJB, and the dissident SLPP MPs have decided to boycott the ceremonial opening of the Fourth session of the Ninth Parliament by President Ranil Wickremessinghe today.
President Ranil Wickremesinghe declared, on January 26, that he would brief Parliament on his decision to implement the 13th Amendment to the Constitution fully.
MP Prof G.L. Peiris told the media that the FPC would boycott President Wickremesinghe’s speech, scheduled to take place today (08) when the Fourth session of the Parliament is ceremonially declared open.
Prof Peiris called the ceremonial opening of the new parliamentary session a mere show. “This is not acceptable. The people are fed up with policy statements. They need solutions instead,” he said.
Chief Opposition Whip and SJB Kandy District MP Lakshman Kiriella, addressing a press conference, at the Opposition Leader’s office in Colombo yesterday said that his party members too would boycott today’s ceremony.
Kiriella said that President Wickremesinghe was now speaking of economic development in 2048. “This he is promising to do while doing everything possible under the sun and the moon to deprive people of their democratic right to an election. Therefore, we have decided not to attend President’s ceremonial treading of the government policy statement which is another example of this makeshift government’s predilection for waste of money and time.”
All Ceylon Tamil Congress, led by Gajendrakumar Ponnambalam, too, has decided to boycott today’s sessions.
TNA spokesman, Jaffna District MP MA Sumanthiran, said that his party would attend Parliament sessions today.
Political party sources said that TNA, JVP, Sri Lanka Muslim Congress and All Ceylon Makkal Congress, in the Opposition ranks, however, would attend Parliament today.
Following the ceremonial opening of the day’s session, the President is scheduled to present the Statement of Government Policy in Parliament, at 10 am, according to the powers vested in him, under Article 33 of the Constitution.
A rehearsal for the ceremonial opening was held Monday at the Parliament premises where many, including students of Presidents’ Girls College, Kotte, were present.
MSC America belonging to largest shipping line calls at ECT
MSC America, the first container vessel under the business promotions programme to attract new lines to the Port of Colombo (POC), called at the East Container Terminal (ECT), owned by the Sri Lanka Ports Authority yesterday (07).
The latest programme to attract new shipping lines to the POC has been planned and implemented in collaboration with the Ministry of Ports and Shipping, Sri Lanka Ports Authority (SLPA), Colombo International Container Terminals (CICT), South Asia Gateway Terminals (SAGT), Ceylon Association of Shipping Agents (CASA) and Sri Lanka Association of Vessel Owners (SLAVO) to effectively address strategic business promotions as a fruitful mean to overcome the prevailing economic crisis. Attracting more new lines to the POC, increasing operational efficiency, expediting naval services, efficiency in logistics and warehouse management and container and cargo transportation are among the objectives.
MSC America that called at the ECT, owned by the POC, will hereafter operate a weekly call to Colombo.
On the first call, yesterday, the vessel carried 2300TEUs to Colombo and is expected to carry 2500TEUs on a weekly basis. The vessel, with a length of 334m and a 7.5m draft, sails under the flag of Panama. The port rotation includes Singapore and South Africa.
MSC is the largest global shipping line, with a fleet of more than 775 TEU vessels for container transportation around the world. The shipping line that maintains long term operations with the POC has a collaborative business relationship of more than 10 years with SLPA. Since 2015, it is the prime shipping line of the POC with an annual operational capacity of 2.0m TEUs. It performs about 900 calls per annum at the POC.
The deep draft vessels, owned by MSC, call at the CICT of the POC, whilst calling the SLPA controlled JCT and ECT with more than 1.0m TEUS per annum, becoming the main customer of the SLPA.
According to MSC Lanka (Pvt.) Ltd., the local agents for MSC shipping lines, another new three shipping lines, under INGWE West Bound service, East Africa Express service and East Med Service, will be calling this month at the POC.
To mark MSC America’s first call at the POC, a special plaque exchange was held at the ECT of the SLPA between Minister of Ports, Shipping and Aviation Nimal Siripala de Silva, and the Master of the vessel, Capt. Matlin Alexander. Chairman of SLPA, Keith D Bernard, and several representatives of MSC Lanka (Pvt.) Ltd., also attended the occasion.
Expressing views at the occasion Minister de Silva said:
“With the deep draft of the East Container Terminal, there is ample potential for mega vessels to call at the port. The remaining development process of the terminal is expedited with an investment of Rs.5.9 billion. Today, a mega vessel of the MSC has contributed for container operations via the Port of Colombo. Similarly four new services will be added to increase the capacity of the POC. That will increase our revenue. This has further strengthened the credibility placed by the international shipping community on the Port of Colombo.”
Remembering Upali Wijewardene, the founder of Upali Group
The Upali Group of Companies, its employees, and sales agents countrywide, have made arrangements to invoke blessings on its founder, Upali Wijewardene, who disappeared in his Learjet, 40 years ago. Bodhi Pooja, Pahan Pooja and an alms-giving will be held, in his memory, on Feb. 13 (Monday).
A special Bodhi Pooja will be held at the Kelani Raja Maha Viharaya, at 6 p.m. on February 13 with the blessings of Prof. Ven. Kollupitiye Mahinda Sangarakkhitha Thera, the Chief Incumbent of Kelaniya Raja Maha Viharaya.
Arrangements have been made to offer alms to the Maha Sangha at the Kelaniya Raja Maha Viharaya, and scholarships to 10 needy children, from the Helena Wijewardene Maha Vidyalaya, Kelaniya.
Alms-giving to the inmates of the Home for the Elders at Mulgampola, Kandy, Bodhi Pooja Pinkama and Kavi Bana Pinkama, from 4.30 p.m. onwards, at the Ceylon Chocolates factory premises.
Bodhipooja, Pahan Pooja and Kavibana deshana will be held at Vidya Niketha Piriven Viharaya, Sapugoda Kamburupitiya.
The employees of Upali Consumer Products have arranged an alms-giving lunch at the ‘Children’s Home’ at Ja-Ela.
Founder’s Day Programme on February 13, 2023.
9.00 a.m. – Holy Mass at Mattakkuliya Church.
10.00 a.m. – Offering of Buddhapooja at the ‘Dhathumandiriya’.
10.30 a.m. – Scholarships to 10 needy children from Helena Wijewardene Maha Vidyalaya, Kelaniya.
11.30 a.m. – Alms-giving for the Maha Sangha at Kelaniya Rajamaha Viharaya.
12 noon – Providing lunch for the Children’s Home, Ja-Ela, organized by the employees of Upali Trading Co. Ltd.
5.15 p.m. – Offering Gilanpasapooja (permissible drinks) for Dhathumandiraya.
6.00 p.m. – Bodhi Pooja and Pahan Pooja at Kelaniya Rajamaha Viharaya.
All these pinkamas (meritorious acts) are organized by Upali Group employees and newspaper, Kandos/Delta and soap agents.
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