Controversial Shell Gas Lanka which came in for widespread criticism by price rises has introduced a new tamper proof security seal as part of a comprehensive programme to improve safety and product quality.
L. P. gas consumers have voiced concern that unscrupulous dealers were draining gas and selling underweight cylinders to the public.
The gas company was privatised in late 1995 with a statutory five year monopoly but two price rises in quick succession in the absence of a gas regulator, which the government claimed was against the conditions of sale, led to public disenchantment of the privatization programme, exposing the darker side of multinational companies operating in small third world countries.
However under government ownership of the gas utility, no firm effort had been made to plug the alleged leaks occurring at gas dealership.
"The security seal is being introduced to provide an added measure of assurance to all customers that their gas cylinders have not been tampered with after being filled and checked by Shell Gas Lanka quality assurance staff," Shell Gas Lanka said in a statement.
The company is implementing a step-by-step programme to improve safety in gas usage, Safety Consultant Jim Nelson told journalists.
During the past year, new measures had been introduced within the company to improve safety procedures, protective gear, monitoring, recording accident investigation and reporting channels.
A dealer training programme was also under way, to improve safety during transport, storage and handling of gas cylinders.
Mr. Nelson said a public safety education programme would also kick off in the near future.
The new tamper proof cap has been developed in Sri Lanka by Ranic (Pvt) Ltd. in consultation with Shell Gas. In addition to preventing unauthorised tampering it will also prevent gas leaks during transport and storage. It will be fitted to cylinders from tomorrow (Feb 3).
Shell Gas expects to use at least five million caps annually.
Mr. Nelson said the newly developed seal was superior to any others currently in use elsewhere and samples had already been sent to Shell operations overseas, such as the UK, which could result in export orders for the fledgling local plastics firm.
The shares of Pure Beverages were suspended last week when prices rose by Rs. 5.50 to Rs. 30 with no apparant reason. On 14 January it traded at Rs. 17.
There was speculation that a power struggle was on the cards. The affair fizzled out later when the company put a damper on the issue saying that no circumstances had arisen that could be expected to cause a sharp price rise.
The company had been stricken by a work stoppage from 12 December 1996. The company informed the stock exchange that its majority shareholder F & N Coca Cola (Pte) Ltd., had purchased 3,600 shares between January 17 - 19 in keeping with their intention of increasing their stake in the company.
Market watchers have also pointed to a research report as having led to the excitement, but others like to believe that there is more to the story.
With retail and foreign investors cashing-in on the first three weeks of upward movement in January , the ASPI eased off at 630 levels.
Foreign investments in moderate volumes are expected in a few blue-chip companies. The peaking of US and London stock exchange and the anticipated declines in US interest rates by mid 1997, is expected to increase global capital movements to emerging new markets. Mostly South American countries and South Asian countries are expected to benefit from these inflows. CSM being one of the most technologically advanced stock exchanges in the world, would attract considerable interest by mid 1997, analysts say.
Domestic institutional activity would also increase in the CSM due to declining TB yields and increase in market activity.
Local government elections to be held on March 27 would be a barometer for the government and opposition, to judge their popularity with the masses. This could catapult the market upwards further than expected, if the opposition shows improved performance resulting in increase market capitalisation in the CSM of upto 40%.
Utilising the Public Enterprises Reform Bill to renationalize six previously privatized ventures, would give mixed signals to foreign investors. The question arises, if a new government is formed by the opposition, what is the possibility that this same bill would not be used to acquire ventures which are presently being privatized as well as future privatization during government's tenure.
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