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‘Litro Gas Lanka’s efficient cost leadership ensures price increase covers costs’



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.

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ESOFT Metro Campus holds Graduation Ceremony 2021



Dr. Dayan Rajapakse – Chairman and Managing Director of the ESOFT Group (Right) presenting a certificate to a graduate

The Annual Graduation Ceremony of ESOFT Metro Campus was held at the Bandaranaike International Memorial Hall (BMICH) on the 23rd and 24th of November 2021. A total of 1,800 students graduated at this year’s event. Successful students received their Pearson BTEC Higher National Diplomas, Pearson Level 7 Qualifications, London Metropolitan University (UK) Degrees and MBA’s, Kingston University (UK) Degrees and MSc’s.

It was held across two days and split into 9 sessions, to be in full compliance with health guidelines. In addition to the conferring of degrees, batch tops were awarded gold medals and special awards were made to the top achievers of the programmes.

Keynote addresses were by an eminent group of academics and industry leaders including Mr. Conard Dias CEO, LOLC Finance PLC, Mr. Thushera Kawdawatta – CEO, Axiata Digital Labs, Dr. Dayan Rajapakse – Chairman and Managing Director of the ESOFT Group, Dr. Sampath Wahala – Chairman, Sri Lanka Accreditation Board, Mr. Tishan Subasinghe – Managing Director and joint Managing Partner Moore Stephens Consulting (Pvt) Ltd and Moore Stephens Aiyar, Prof. A.A.C Abeysinghe – M.Phil. PhD Programme Coordinator, Senior Lecturer Faculty of Management & Finance, University of Colombo.

Foreign delegates from the University Partners were present virtually and delivered their speeches and wishes for the graduates via video. The Virtusa careers team were also present on both days in order to provide career opportunities to the young and successful graduates. ESOFT prides itself in producing graduates who are work-ready and able to take on the challenges and opportunities presented by the new economy.

ESOFT has a rich history of 21 years and is the largest private sector higher education network in Sri Lanka, and offers a variety of programmes through an extensive island-wide network of over 40 branches and serves over 40,000 learners each year in a range of programmes from school leaver courses to postgraduate programmes.

ESOFT partnered with Kingston University London in 2012 to offer undergraduate and postgraduate qualifications in engineering and soon established a dedicated College of Engineering in Katubedda. In 2013, they partnered with London Metropolitan University to offer a range of programmes leading to undergraduate and postgraduate awards in Computing, Business, Hospitality, and Travel & Tourism. A range of MSc programmes in IT and an International Doctoral programme for IT, Science and Engineering research areas, has also been introduced via Kingston University.

The ESOFT Group has won local and international awards from Pearson (UK), BCS (UK), NBQSA, National Chamber of Commerce, Federation of Chambers of Commerce of Sri Lanka in recognition of their academic excellence and business performance. Their pinnacle accomplishment was to be recognized by the Sri Lankan Government as a Non-state Degree Awarding Institution in 2019.

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Coconut industry products raking in forex to the tune of $ 7000 yearly – State Minister



By Steve A. Morrell

Earnings from exporting coconut products amounted to $ 7000 annually. Such exports include jaggery and treacle, which are key products relating to the coconut industry, State Minister of Coconut, Kithul and Palmyrah Cultivation Promotion Arundika Fernando said.

Although coconut, as part of the plantation industry, was not given due recognition, it was now a distinct contributor to forex earnings and was of significant importance to the economy of the country, Fernando said.

The State Minister added: “Development of the coconut plantations includes value addition promotion to its various products, which are now key to sustaining the coconut plantations.

“Such development included propagation of 600,000 nursery plants for distribution among smallholders and large-scale plantations to add further progress to the industry. As a result, the coconut industry is part of the mainstream economy.

“The coconut industry made a substantial financial contribution to the economy of the country. Value addition in all products was key to development. Coconut products, used extensively in allied local industries, were contributors to value addition. This is efficiently handled by the private sector.

“Collaboration with the Jaffna University was on-going to develop kitul and palmyrah.

“Soil testing and further inputs were envisaged for development.

“Export markets would include Europe, Canada and the US. This is particularly true of kitul treacle and jaggery. Value of these exports would reach approximately $ 2 million.”

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INSEE Cement’s 360-Degree Approach Eases Cement Shortage in Sri Lanka



Operating at maximum production capacity with optimized distribution channels for a number of weeks, INSEE Cement has successfully helped to mitigate the cement shortage that was prevailing in the local market. INSEE Cement’s concentrated and immediate contingency measures across its entire operation at the onset of the shortage ensured an uninterrupted market supply of cement, while also logging a record-high 700,000 MT production output during the third quarter of 2021 for the company.

“As Sri Lanka’s leading cement manufacturer, INSEE Cement took on the responsibility to ensure the local construction industry’s post-COVID-19 revival remained on its trajectory,” stated Gustavo Navarro, Chief Executive Officer at INSEE Cement Sri Lanka. “We continued to fully support government regulations and industrial policies to first stabilize the market, and were able to deploy our island-wide distribution and dealership network to ensure an uninterrupted supply across the island. The loyalty and patience of our customers gave us that extra encouragement we needed to overcome the challenge.”

INSEE Cement operates at a 3.6MT maximum capacity, with a 1.5MT production at the Galle plant, a 1.3MT output from the Puttalam facility and a 0.8MT import capacity at the Colombo Cement Terminal. To mitigate the shortage the company introduced two more additional import vessels to its logistics operation to accelerate production and distribution cycles.



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