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Litro goes for bulk buying to end gas queues

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Litro Gas Lanka yesterday announced that it was looking at the possibility of bulk buying as opposed to ad-hoc purchasing to manage the domestic demand.

A spokesperson for Litro Gas Lanka said that the government had given the green light for pursuing the proposed plan to mitigate the current crisis: “Litro Gas Lanka caters to the demand from BOI, Export Processing Zones and other export-oriented industries, and sectors that are critical to the economy and bring in much-needed forex. Litro Gas Lanka single-handedly managed to cover the country’s critical industries – including the HORECA category – undertaking the challenge of catering to its own demographic as well as the market segment dependent on its competitor, the only other LPG supplier, for the duration of 3-4 months it was unable to actively meet the demand.”

Detailing the negotiation process for the contingency order, he said that SIAM Gas of Singapore offered the lowest rate of USD 96 as the shipping cost for a Metric tonne of LPG for the 2022/2023 tender but failed to release the consignment until a standby Letter of Credit (SBLC) to the value of USD 30mn was furnished. Further, SIAM Gas had also informed that the required quantity of 15,000 MT couldn’t be provided but 6,600 MT could be arranged instead, 10 days from the date of LOC. It was also informed this consignment would be provided at USD 112 instead of formerly quoted USD 96.

As such, Litro Gas opted for the second lowest bid of a minimum quantity of 100,000 MT at USD 129 from Omani Trading (OQ Trading), based on the decision taken at the Cabinet meeting held on June 8 – taking into account the feasibility and time considerations. The USD 17 difference between the two aforementioned bidders translates to less than Rs. 80 per cylinder, which is not a significant burden proportional to the inconvenience faced by the public due to lack of LPG in the market.

Litro Gas Lanka wished to clarify that SIAM Gas was left out from this contingent purchase not due to an issue involving commissions, as falsely claimed by certain media reports, but rather due to the stipulations and demands put forward by the supplier at this critical juncture. Logistical limitations, such as not having adequate vessels for delivery, was also a reason for ruling out SIAM Gas as a supplier for the contingency shipment, as well as the long term. The total requirement would have needed four vessels, over a period of six weeks, which SIAM Gas could not confirm. Even the vessel allocated for the Spot (contingency) was over 26 years old. These factors, too, contributed to Litro Gas looking for more reliable, dependable suppliers for the short and long terms.

The initial approval to secure LPG from SIAM Gas was granted by the Cabinet, two months ago, during the tenure of the previous Chairman, but did not materialize and it was against this backdrop that the tender was awarded to the next best alternative, OQ Trading, to expedite the process.

During the period Nov 2019 to Dec 2022 it has cost Litro Gas Lanka a staggering Rs.11.1 billion to maintain the price of an LPG cylinder at a constant rate so that LPG was affordable to the average household, which coincided with COVID-19 lockdowns.

Litro Gas Lanka is one of the most profitable SOEs in Sri Lanka, employing a cadre of only 225 permanent staff which is a testament to its efficiency and productivity. The enterprise made available an unprecedented dividend of Rs. 13 bn during the last decade to the National Treasury which is generally used for nation-building activities.

Furthermore, Litro Gas Lanka fulfilled its obligations as a socially responsible corporate by paying Rs. 34.5bn as taxes during the past decade.

As the national provider of LPG, Litro Gas Lanka requests cooperation of all stakeholders to swiftly resolve the present crisis and restore normalcy.



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Courtesy call by the Heads of Mission- Designate on Prime Minister

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The heads of mission designate to Sri Lanka paid a courtesy call on Prime Minister Dr. Harini Amarasuriya on 26th of March at the Prime Minister’s office.

The delegation comprised Dharshana M. Perera, High Commissioner – designate of Sri Lanka to Malaysia, Ms. Dayani Mendis, Ambassador and PRUN – designate of Sri Lanka to Austria, Ms. N.I.D. Paranavitana, Ambassador – designate of Sri Lanka to Ethiopia & African Union, Prof. (Ms.) M.I. Fazeeha Azmi,Ambassador – designate of Sri Lanka to Iran,  Saman Kumara Chandrasiri, Ambassador – designate of Sri Lanka to Israel, and  M. Farook M. Fawzer, Representative – designate of Sri Lanka to Palestine.

The Prime Minister, Dr. Harini Amarasuriya, extended her best wishes to the Heads of Mission–designate and underscored the importance of their forthcoming assignments in advancing Sri Lanka’s national interests emphasizing their collective role in contributing towards the socio-economic upliftment of Sri Lanka.

The Prime Minister further highlighted the importance of projecting a positive and credible image of Sri Lanka internationally, through consistent, professional, and strategic engagement in their respective host countries and multilateral platforms.

She encouraged the Heads of Mission to actively identify and facilitate high-quality investment opportunities, particularly in sectors aligned with Sri Lanka’s development priorities, with a focus on sustainability, innovation, and long-term value addition.

Particular emphasis was placed on the promotion and diversification of Sri Lanka’s exports, including the exploration of new markets and strengthening trade linkages.

The meeting was attended by the Secretary to the Prime Minister, Additional Secretary to the Prime Minister Ms. Sagarika Bogahawatta and heads of mission-designate.

[Prime Minister’s Media Division]

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SC finds Keheliya, others, guilty of violating FRs of public through corrupt drug procurement deal

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The Supreme Court yesterday held former Health Minister Keheliya Rambukwella and several senior health officials liable for violating the fundamental rights of the public over a controversial drug procurement carried out under the 2022 Indian Credit Line.

Delivering the judgment, a three-judge bench, headed by Chief Justice Preethi Padman Surasena, and comprising Justice Kumudini Wickremasinghe and Justice Janak de Silva, found that the procurement of medical supplies from an unregistered company, in breach of established procedures, had resulted in a serious infringement of public rights.

The Court ruled that the granting of a Waiver of Registration by the authorities was “wrongful, arbitrary and capricious,” and held that the direct procurement carried out on an unsolicited basis was unlawful. The transaction was accordingly declared null and void.

In a significant order, the Court directed Rambukwella to pay Rs. 75 million in compensation to the State from his personal funds.

The then Health Ministry Secretary Janaka Chandragupta and former Chairman of the National Medicines Regulatory Authority (NMRA), Prof. S. D. Jayaratne, were each ordered to pay Rs. 50 million.

The Court further directed NMRA Chief Executive Officer Dr. Wijith Gunasekara and former Director of the Medical Supplies Division Dr. Thusitha Sudarshana to pay Rs. 50 million each as compensation.

The ruling followed the hearing of a fundamental rights petition filed by Transparency International Sri Lanka and two other parties.

The Court also instructed the Commission to Investigate Allegations of Bribery or Corruption to initiate appropriate action under the Anti-Corruption Act against those found responsible.

Senior Counsel Senany Dayaratne, with Nishadi Wickramasinghe, Lasanthika Hettiarachchi, Janani Abeywickrema and Maheshika Bandara, appeared for the petitioners.

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Sajith nudges govt. to follow India’s example in giving relief to consumers by slashing taxes on fuel

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Sajith

Opposition and SJB Leader Sajith Premadasa yesterday urged President Anura Kumara Dissanayake to reduce taxes on fuel, just as the Indian government has done.

He said in a post on X that “Modi government has decided to reduce the Special Additional Excise Duty on petrol and completely remove it for diesel in order to cushion the hardship on the Indian consumer. High time for Anura Kumara Dissanayake to keep up to his election promise and follow suit.”

Meanwhile foreign media reported that India has slashed excise duties on petrol and diesel to protect consumers and rein in a potential spike in inflation, while imposing windfall taxes on aviation fuel and diesel exports, amid volatile global oil markets, as a result of the Iran war.

Global oil prices have surged past $100 per barrel after the near closure of the Strait of Hormuz, which serves as a conduit for 40% of India’s crude oil imports, since the US and Israel first struck Iran on February 28.

In a government order, released late on Thursday, India’s Finance Ministry reduced the special excise duty on petrol to three Indian rupees ($0.0318) per litre from 13 Indian rupees earlier. It also cut the duty on diesel to zero from INR 10 rupees per litre.

The government did not say how much the duty cuts would cost. The move comes ahead of elections next month in four Indian states and one federal territory, with Indian voters known to be extremely sensitive to higher prices.

“Government has taken a huge hit on its taxation revenues to ensure very high losses of oil companies, approximately 24 rupees a litre for petrol and 30 rupees a litre for diesel, at this time of sky high international prices, are reduced,” Indian Oil Minister Hardeep Singh Puri said in a post on X.

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