The energy industry globally operates with fluctuating prices that determine the final price of LPG across markets. Globally, LPG prices have been shifting with demand and currency discrepancies, causing costs to soar and markets to tumble as one of the world’s most efficient and low cost energy sources go through turbulent times.
A press release said The national LPG provider, Litro Gas Lanka has developed a cost leadership advantage which ensures that the price increase covers costs (as indicated in the chart below).
Additionally, with 80% market share with capability of 8000 MT and 3000 MT storage and distribution, Litro Gas Lanka sustains a unique cost leadership price advantage that has been validated by the Consumer Affairs Authority as well. Litro Gas Lanka has been long recognized for its efficient optimization of resources and costs, a key operational benefit that has seen the cost of operations remain low at a steady 6%. The price increase sustained by Litro Gas Lanka over the years affirm this.
The only state owned entity to generate an outstanding revenue of Rs 50 billion, Litro Gas Lanka has consistently delivered exceptional economic benefit amounting to over Rs 11 billion up to now. The Company has paid Rs 34.5 billion as taxes to the state and Rs 13 billion as dividends to The Treasury.
Litro Gas Lanka believes that the LPG industry in Sri Lanka has the potential for expansion and growth. Accordingly, the company has already submitted proposals towards consolidating the industry, to the Government, which are as follows.
1. Litro Gas Lanka to operate the Hambantota Laugfs terminal for a management fee that will cover the operation cost and pass the income generated to Banks / The Treasury
2. Litro Gas Lanka to lease the Hambantota Laugfs facility on a long term lease of 10 years.
3. Litro Gas Lanka to purchase 100% of the Hambantota Laugfs terminal via a consortium of investors.
The Company believes that the proposed mechanisms will expand the industry and make the MRP more affordable to consumers.
Litro Gas Lanka further says that a floating LPG storage that can store up to 40,000 MT, without any additional cost can be utilized if needed, to meet supply demand.
Energy industry sources point out that the burden of servicing debt taken to finance the large facilities of Laugfs LPG terminal at Hambantota and plans to ease their 40 billion debt raised without substantiated collateral from several banks, mainly the state owned banks may impact the entire industry and the economy. Added to that is the fact that the Laugfs LPG storage facility at Hambantota is widely seen globally as a non-performing asset. Further, the price of Rs 2,840 per 12.5 cylinder by Laugfs is indicative of the fact that as a privately owned company, Laugfs is sustaining losses incurred by a non-efficient process and must consolidate its efforts.
As the national LPG provider with a strongly community focused approach, Litro Gas Lanka plays a pivotal role as the country’s energy industry leader. Throughout the years, the Company has always strived to maintain the customer value proposition even with price increases and market fluctuations ; for an example, in 2013, when USD was at LKR 160.00, the company was selling a 12.5 cylinder at Rs 2,300.00. The current price increase therefore clearly covers our costs and does not include a profit margin to the Company, confirm company sources.
Litro Gas Lanka believes that as the national LPG provider, the Company has a national energy mandate to fulfill to the people of Sri Lanka – a goal the Company is committed to.
Pan Asia Bank posts steady performance during FY 2023 –
Profit before Tax increases by 258% amidst external challenges
Pan Asia Banking Corporation PLC reflected a steady performance amidst multitude of adversities emerging from challenging macro-economic conditions as the Bank reported its financial performance during 2023, which showed judicious portfolio management and prudency exercised in dealing with possible fallout on its asset quality in challenging times.
The Bank reported a Pre-tax Profit of Rs. 2,328 Mn for the year ended 31st December 2023, which is 258% increase compared to corresponding period last year, supported by improved net interest income, increased trading gains from government securities and reduced exchange losses.
The Sri Lankan economy has experienced some positive signs of gradual economic recovery and a measure of stability in macro-economic factors compared to the previous year, with the appreciation of LKR against USD and the IMF bailout followed by the Domestic Debt Optimization (DDO) announcement. The multiple economic scenario models used regarding collective impairment in 2022 were continued in 2023 to ensure that adequate buffers were in place to absorb any potential credit risk that could arise in the future. The allowance for overlays applied in previous year was continued and maintained during 2023 too. Meanwhile, the Bank managed to end the year with healthy credit quality matrices due to improved credit underwriting standards and concerted collection & recovery efforts despite the contraction in the loan book during 2023 which impacted the Bank’s Stage 3 Loan Ratio adversely.
Furthermore, the Bank increased impairment provision buffers held regarding investments in International Sovereign Bonds of Government of Sri Lanka (SLISBs) further during 2023 with the expectation of possible adverse outcomes of the on-going government External Debt Restructuring (EDR) programme. The Bank recognised an impairment charge of nearly Rs. 2 Bn regarding International Sovereign Bonds during 2023.
The interest income for the year 2023 rose by 39% due to the high interest rates that prevailed during the period under review compared to corresponding period of the last year and the re-pricing effect of facilities in response to the market conditions. Further, the growth in interest income was supported by the increased interest income from Rupee denominated securities of the Government of Sri Lanka (T-Bills & Bonds) due to increased investments and high interest rates offered on such new investments compared to the previous year. Consequently, the net interest income increased by 9% in 2023 compared to the last year. (Pan Asia Bank)
SLT-MOBITEL celebrates the season of love with exciting giveaways
SLT-MOBITEL, the National ICT Solutions Provider, celebrated Valentine’s Day with a series of heartwarming promotions and networking activities, spreading love and joy for customers across the country.
Connecting hearts from all around the world on social media, SLT-MOBITEL invited participants to share their loving memories for a chance to win movie tickets. Customers were also given the opportunity to dedicate romantic ringing tones to their loved ones by dialling special codes.
As part of the Valentine’s Day celebrations, SLT-MOBITEL also offered a special promotion, providing a special screening for the glamorous movie ‘Sihinayeki Adarey’, powered by SLT-MOBITEL. Furthermore, customers were treated to a surprise bonus of 10GB of free data upon recharging their SLT-MOBITEL mobile numbers with Rs. 500 or more through any banking app.
Taking love to the hill country, in a special engagement event at the Kandy City Centre, fans were able to participate in activities and interact with the ‘Sihinayeki Adarey’ cast including Hemal Ranasinghe, Sheshadri Priyasad, and many others.
Through these exciting promotions, SLT-MOBITEL helped spread love and joy this season while enhancing the customer experience with exclusive activities.
To discover more of SLT-MOBITEL’s Valentine’s Day promotions, visit https://www.facebook.com/SLTMobitel.
Call for Proposals: Saman Kelegama Memorial Research Grant 2024
The Institute of Policy Studies of Sri Lanka (IPS) is inviting proposals for the Saman Kelegama Memorial Research Grant 2024. The grant is an annual, merit-based grant awarded to an outstanding undergraduate studying in a Sri Lankan university. It aims to promote policy entrepreneurs among undergraduates by encouraging policy-relevant, rigorous and innovative socio-economic research.
The grant was established in 2018 to honour Dr. Saman Kelegama’s legacy of independent research and public policy engagement in socio-economic development in Sri Lanka and the wider South Asian region. Dr. Kelegama was the Executive Director of the IPS from 1995 to 2017.
Fourth-year undergraduates studying economics or a related subject in a University Grants Commission approved university or higher education institution in Sri Lanka are eligible to apply. Proposals must be written according to the guidelines provided and emailed to email@example.com on or before the submission deadline of 30 April 2024.
HOW WILL THE WINNER BE CHOSEN? The quality of the proposals will be judged for its policy relevance, feasibility, originality and creativity. Three finalists will be chosen and invited to present their proposals at the IPS, where the award recipient will be selected.
OUTCOMES OF THE GRANTS – The recipient will be expected to produce a Policy Discussion Brief within six months of receiving the grant. The research report can be written individually or jointly with an IPS senior researcher.
BENEFITS OF THE GRANT – The beneficiary will be awarded a one-time research grant of LKR 200,000 to carry out the proposed research and a three-month internship at the IPS. The recipient will be able to seek guidance from senior researchers and benefit from IPS resources to complete the proposed study during the internship. To enable students from all over Sri Lanka to benefit from this opportunity, the terms of the internship will be flexible. The internship can either be a fully in-house internship at IPS, or it can be an in-house plus online internship. In the case of the second option, the in-house component of the internship should be at least six weeks. To encourage research dissemination, an additional subsidy will be provided for presenting the research findings at local conferences and workshops.
30 April 2024 – Deadline for Submission of Proposals
01 June 2024 – Announcement of Finalists
23 June 2024 – Announcement of the Winner
Further information is available at: https://www.ips.lk/saman-kelegama-memorial-research-grant/
Fair weather will prevail except for evening showers in Kalutara, Galle, Matara and Rathnapura districts
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