News
Will ‘changing pillows’ help Litro Gas to tide over billions of rupees in losses?
With soaring global LPG prices
By Suresh Perera
The appointment of a new Chairman to Litro Gas Lanka Limited has raised questions over whether “changing pillows” could help the government-owned enterprise that dominates Sri Lanka’s Liquid Petroleum Gas (LPG) industry to recoup Rs. 3 billion (Rs. 3,000 million) in accumulated losses over the past few months
“We are grappling with around Rs. 40 million in losses per day”, a senior Litro Gas official complained.
It has boiled down to a situation, where the company has to sell LPG below the procurement price by throwing in an involuntary ‘subsidy’ Rs. 700 for every 12.5kg cylinder of cooking gas sold in the market, he said.
With earnings and savings fast running out, it’s difficult to imagine how Litro Gas will be able to continue operations without a price revision, he remarked.
Amidst the crisis faced by Sri Lanka’s biggest importer and supplier of LPG, the government named Theshara Jayasinghe, former Chairman of National Youth Services Council as the new head of Litro Gas Lanka Limited.
He replaced Anil Koswatte, a sales and marketing professional and a leading entrepreneur, who founded ‘Lakarcade’, Asia’s biggest novelty gift and souvenir chain.
It was an unceremonious exit for Koswatte, who officials acknowledged, “did his utmost under difficult circumstances as the spike in international LPG prices was beyond him”.
Koswatte came under flak at one time for purportedly drawing a monthly remuneration of Rs. 3 million – Rs. 2 million from Litro Gas Lanka and Rs. 1 million from Litro Terminals Lanka Limited.
Declining to either confirm or deny that he he was paid a seven-figure salary, he told The Sunday Island at the time that his remuneration was a matter for the shareholders of the company to determine.
If Koswatte drew Rs. 3 million as his monthly salary, then his successor will also be entitled to the same privilege unless decided otherwise, officials pointed out.
Litro Gas Lanka is wholly owned by the Sri Lanka Insurance Corporation.
The Consumer Affairs Authority (CAA) has so far declined to give the nod to an appeal by Litro Gas for a Rs. 700 price increase per 12.5kg domestic LPG cylinder, they said.
At a time global LPG prices have soared, appointing a new Chairman to Litro Gas cannot be expected to make a revolutionary change, industry players pointed out.
“Whatever name there is to a face delegated to run the business, the reality is that the surge in international gas prices, coupled with the appreciation of the US dollar, has made procurement increasingly costly”, they said.
The bitter truth is that local LPG prices will have to be adjusted accordingly to sustain imports and keep the company (importer) afloat, they continued.
Asked about procurement prices, Janaka Pathirathna, Director, Sales, Marketing and Corporate Affairs of Litro Gas Lanka, said that global pricing has shot up to US$ 600 per metric tonne.
He said that the price is expected to remain high till December this year as the demand for LPG has picked up again with the world’s industrial sector resuming operations following the improvement in the Covid-19 pandemic situation.
He said that Sri Lanka procures LPG from a government-owned company in Oman at prevailing global market prices.
Meanwhile, the CAA’s Executive Director, Thushan Gunawardena said there is still no decision on revising the price of gas. Both Litro and Laugfs Gas have sought a Rs. 700 increase per 12.5kg domestic cylinder.
On the launch of the controversial 18-litre cylinders, he said the CAA Council is now examining the matter for follow-up action after a report is submitted.
He said the regulatory body has also come across issues relating to the use of gelatine in certain yoghurts, creamers instead of fresh milk in milk powder and a high alkaline level in bath soaps.
During an operation conducted in the dark hours of 01 Jan 26, the Sri Lanka Navy seized an Indian fishing boat and apprehended 11 Indian fishermen while they were poaching in Sri Lankan waters, off Kovilan of Kareinagar, Jaffna.
The Northern Naval Command spotted a group of Indian fishing boats engaging in illegal fishing, trespassing into Sri Lankan waters. In response, naval craft of the Northern Naval Command were deployed to drive away those Indian fishing boats from island waters off Kovilan.
Meanwhile, compliant boarding made by naval personnel resulted in the seizure of one Indian fishing boat and apprehension of 11 Indian fishermen who continued to engage in illegal fishing in Sri Lankan waters.
The seized boat (01) and Indian fishermen (11) were handed over to the Fisheries Inspector of Myliddy, Jaffna for onward legal proceedings.
Latest News
Tri-Forces donate LKR. 372 million, a day’s pay of all ranks to ‘Rebuilding Sri Lanka’ Fund
Members of all ranks from the Sri Lanka Army, Sri Lanka Navy and Sri Lanka Air Force have collectively donated a day’s basic salary to the ‘Rebuilding Sri Lanka’ Fund, which was established to restore livelihoods and rebuild the country following the devastation caused by Cyclone Ditwah.
Accordingly, the total contribution made by the Tri-Forces amounts to LKR. 372,776,918.28.
The cheques representing the financial contributions were handed over on Wednesday (31 December) at the Presidential Secretariat to the Secretary to the President, Dr. Nandika Sanath Kumanayake.
The donations comprised LKR. 250 million from the Commander of the Army, Major General Lasantha Rodrigo; LKR. 73,963,879.71 from the Commander of the Navy, Rear Admiral Kanchana Banagoda and LKR. 48,813,038.97 from the Commander of the Air Force, Air Marshal Vasu Bandu Edirisinghe.
Secretary to the Ministry of Defence, Air Vice Marshal Sampath Thuyacontha, was also present on the occasion.
The Ceylon Electricity Board (CEB) has submitted a proposal to the Public Utilities Commission of Sri Lanka (PUCSL) seeking an 11.57 percent increase in electricity tariffs for the first quarter of 2026, citing an estimated revenue shortfall and additional financial pressures, including cyclone-related damages.
According to documents issued by the PUCSL, the proposed tariff revision would apply to electricity consumption from January to March 2026 and includes changes to both energy charges and fixed monthly charges across all consumer categories, including domestic, religious, industrial, commercial and other users.
Under the proposal, domestic electricity consumers would face increases in unit rates as well as fixed monthly charges across all consumption blocks.
The CEB has estimated a deficit of Rs. 13,094 million for the first quarter of 2026, which it says necessitates the proposed 11.57 per cent tariff hike. The utility has noted that any deviation from this estimate whether a surplus or a shortfall will be adjusted through the Bulk Supply Tariff Adjustment (BSTA) mechanism and taken into account in the next tariff revision.
In its submission, the CEB said the proposed revision is aimed at ensuring the financial and operational stability of the power sector and mitigating potential risks to the reliability of electricity supply. The board-approved tariff structure for the first quarter of 2026 has been submitted to the PUCSL for approval and subsequent implementation, as outlined in Annex II of the proposal.
The CEB has also highlighted the financial impact of Cyclone Ditwah, which it said caused extensive damage to electricity infrastructure, with total losses estimated at around Rs. 20 billion. Of this amount, Rs. 7,016.52 million has been attributed to the first quarter of 2026, which the utility said has a direct bearing on electricity tariffs.
The CEB warned that if external funding is not secured to cover the cyclone-related expenditure, the costs incurred would need to be recovered through electricity tariffs in the second-quarter revision of 2026.
Meanwhile, the PUCSL has said that a decision on whether to approve the proposed tariff increase will be made only after following due regulatory procedures and holding discussions on the matter.
By Sujeewa Thathsara ✍️
Two people killed in magnitude 6.5 earthquake in Mexico
President Trump says the US has ‘captured’ Venezuelan President Nicolas Maduro and his wife and flown them out of the country
Navy seize an Indian fishing boat poaching in northern waters
US Coast Guard suspends search for survivors of Pacific boat strike
Venezuela’s capital hit by explosions, Caracas blames the US
Tri-Forces donate LKR. 372 million, a day’s pay of all ranks to ‘Rebuilding Sri Lanka’ Fund
‘Dates have the highest sugar content to fight Coronavirus’
Sunday Island 27 December – Headlines
#SundayIsland 17th December – Headlines
Sunday Island – 28th March
Sunday Island Headlines – 21 March
Sunday Island – 21st February – Headlines
-
Sports6 days agoGurusinha’s Boxing Day hundred celebrated in Melbourne
-
News4 days agoLeading the Nation’s Connectivity Recovery Amid Unprecedented Challenges
-
Features5 days agoIt’s all over for Maxi Rozairo
-
Sports7 days agoTime to close the Dickwella chapter
-
News7 days agoEnvironmentalists warn Sri Lanka’s ecological safeguards are failing
-
News5 days agoDr. Bellana: “I was removed as NHSL Deputy Director for exposing Rs. 900 mn fraud”
-
News4 days agoDons on warpath over alleged undue interference in university governance
-
Opinion3 days agoRemembering Douglas Devananda on New Year’s Day 2026