Govt. goes ahead with Litro Gas restructuring
The country’s largest state-run LPG supplier, Litro Gas Lanka Ltd, and its terminal, Litro Terminals (Pvt) Ltd are to continue its restructuring process of divesting shares in the private sector.
The government intends to sell all or most of its shares in the company under the ongoing restructuring procedure, a high official of the Finance Ministry said adding that bids have been called for proposals by the previous regime.
No action has been taken to cancel the bids, the official said, adding that it’s the intention of the government to sell either a majority or all of its shares in the company.
This is in line with proposals sought during the former administration and reiterates a continuing pledge for restructuring SOEs under a strategic economic plan.
In the closing session of the Sri Lanka Economic Summit held on Wednesday, organised by the Ceylon Chamber of Commerce, Deputy Finance Minister Harshana Suriyapperuma spoke at length about the government strategy with regard to SOEs without naming any particular entity.
He explained that certain SOEs would be retained under the government while others would be privatised or their models changed to hybrid structures like public private partnerships (PPPs).
“The intention is to assess the commercially viable state enterprises and find ways of increasing their value with investments by the private sector. Although some of the SOEs are commercially viable, they have not been maximised in their scale of operation, profitability, or market expansion,” Mr. Suriyapperuma said.
As a part of restructuring, eight bidders have been selected as of July 2024 by the previous regime to acquire shares in Litro Gas Lanka Ltd and its terminal operations.
The shortlist includes the who’s who of international and regional energy players such as Vitol Asia, Bharat Petroleum, Siamgas and Petrochemicals Public Company, Bgn Int Dmcc and Bayegan Dis Ticaret, Confidence Petroleum India, OQ Trading Ltd, Tristar Transport, and a consortium of Infinity Holdings and National Gas Company. These bidders have been invited to submit proposals detailing their acquisition plans.
Despite the fact that the privatisation process is at an advanced stage, Litro Gas Lanka Ltd. has performed exceptionally well. According to official data, the company announced a total dividend of Rs.3 billion to the Treasury through its major shareholder, Sri Lanka Insurance Corporation.
This was inclusive of Rs.1.5 billion disbursed in October 2023, with an additional Rs.1.5 billion on January 26, 2024. Besides, the company paid Rs.2.6 billion in taxes and duties, further cementing its position as a profitable state entity, an official of the Litro Company disclosed.
Operationally, Litro has successfully navigated various challenges, including foreign reserve shortages that affected supply chains. Nevertheless, the company maintained a steady and uninterrupted supply of LPG to both industrial and household consumers.
The Liro official underscored that the fiscal year 2023/2024 was a profitable one for the company, further highlighting its financial stability amid economic uncertainties.
The privatisation of Litro Gas Lanka Ltd is a fine balance between the state and the private sector efficiencies as Sri Lanka moves ahead in its economic restructuring process. And it will have to be observed over the ensuing months how that transition unfolds, and what is in store on the energy market and economic stability of the country.
Hitad.lk has you covered with quality used or brand new cars for sale that are budget friendly yet reliable! Now is the time to sell your old ride for something more attractive to today's modern automotive market demands. Browse through our selection of affordable options now on Hitad.lk before deciding on what will work best for you!