March 19, Colombo (LNW): The Ministry of Finance has launched a loan programme designed to provide support to private mill owners engaged in paddy procurement activities during the Maha season.
Under this initiative, a substantial loan amounting to Rs. 1,500 million has been disbursed to assist private mill owners in their paddy purchases.
It is projected that a total of Rs. 9,000 million in loans will be extended through this programme.
Notably, despite the commencement of the loan programme, the Ministry of Finance has not allocated funds to the Paddy Marketing Board for paddy procurement during this period.
This decision stems from the outstanding dues owed by the Paddy Marketing Board to the Treasury, which currently amount to Rs. 28,600 million.
March 19, Colombo (LNW): The two-day parliamentary debate on the motion of no-confidence against Speaker Mahinda Yapa Abeywardena is set to commence today (19).
Following the decision made at last week’s Committee on Parliamentary Business meeting chaired by Abeywardena, the debate is scheduled to begin at 9:30 a.m. and will continue until 5:30 p.m. today.
Tomorrow, March 20, the debate is expected to conclude by 4:30 p.m., with a vote on the no-confidence motion to follow.
The motion against the Speaker was submitted to the Deputy General Secretary of Parliament on March 5 and has garnered the signatures of 44 parliamentarians, including Opposition Leader Sajith Premadasa, Chief Opposition Whip Lakshman Kiriella, and several other MPs.
The no-confidence motion alleges that the Speaker disregarded recommendations from the Supreme Court regarding various sections of the Online Safety Bill.
Additionally, it accuses Abeywardena of allowing the passage of the bill’s third reading without a vote and ignoring calls for a division by the Chief Opposition Whip during the Committee Stage.
Furthermore, opposition MPs contend that the Speaker unconstitutionally used his decisive vote to confirm the appointment of IGP Deshabandu Tennakoon, despite a split decision within the Constitutional Council.
The Speaker’s vote broke the tie and facilitated the appointment, disregarding the abstentions of two council members, they alleged.
March 19, Colombo (LNW): Transport and Highways Minister Bandula Gunawardana has announced plans for the expeditious completion of the third phase of the Central Expressway, spanning from Pothuhera to Galagedara, within a two-year timeframe.
Gunawardana outlined that the government aims to finalise the initial phase of construction from Pothuhera to Rambukkana by 2025, with the entire project anticipated to conclude by July 2026.
Upon completion, the Central Expressway will provide enhanced connectivity for the public, facilitating travel from Mirigama to Rambukkana.
These updates were provided during a progress review meeting held at the project office situated in the Lihinigiriya area of Pothuhera.
The third phase of the Central Expressway, covering a distance of 32.45 kilometres, features four interchanges: Pothuhera, Polgahawela, Rambukkana, and Galagedara.
Construction activities for the associated interchanges are presently underway.
March 19, Colombo (LNW): The Inland Revenue Department (IRD) of Sri Lanka is set to implement a strategy aimed at enhancing tax compliance among the nation’s highest-income earners, with plans to identify a group of 100 taxpayers with the most substantial reported incomes from diverse sources.
This targeted group will be selected through a comprehensive review of various data sources, including third-party information such as real estate holdings, reports from the Financial Intelligence Unit (FIU), bank account records, and data obtained from treaty partners, a report by Sunday Times disclosed.
The IRD’s initiative includes ongoing monitoring and review, with additional individuals slated to be added to the scrutiny list as the programme progresses.
Commissioner General of the IRD, W.A. Sepalika Chandrasekara, emphasised that this measure is part of a broader effort to enhance fairness and instill confidence in the nation’s tax administration.
To facilitate this endeavour, the IRD has established a dedicated unit known as the High Wealth Individuals Unit (HWIU), comprising ten members located at the Large Taxpayer Office of the department.
This unit is tasked with engaging select high-net-worth individuals and their advisors to ensure compliance with tax filing obligations.
Furthermore, the HWIU will conduct additional risk assessments and profiling of affluent taxpayers, with a focus on auditing cases deemed to pose the highest risks.
In pursuit of comprehensive information, the IRD will collaborate with both domestic and international entities to access relevant data that can aid the HWIU in identifying potential instances of tax non-compliance.
March 19, Colombo (LNW): Former MP Hirunika Premachandra has lodged a Fundamental Rights (FR) petition with the Supreme Court, seeking an injunction to prevent Deshabandu Tennakoon from assuming the role of Inspector General of Police (IGP).
In her petition, Premachandra listed Secretary to the President Saman Ekanayake, Constitutional Council Chairman Speaker Mahinda Yapa Abeywardana, Constitutional Council members, and the Attorney General as respondents.
The petition highlights that the Attorney General implicated Tennakoon as a suspect in a case concerning the assault on peaceful demonstrators at Galle Face on May 9, 2022.
Additionally, it references a prior Supreme Court ruling (SC FR 107/2011) where Tennakoon was found to have violated the fundamental rights of a former army soldier and was ordered to pay compensation of Rs. 500,000.
Premachandra argues that the appointment of Tennakoon undermines the interests of the public and violates the duty of state organs to uphold fundamental rights.
She contends that this appointment threatens the Rule of Law and contravenes Article 12(1) of the Constitution, as well as Article 41(E)4 regarding the Constitutional Council’s voting procedure.
The petition was filed by Attorney-at-Law Sithara Sampath Wijewardena on behalf of the former MP.
March 19, Colombo (LNW): The Criminal Investigation Department (CID) has launched an probe into an incident involving former Minister Keheliya Rambukwella, who is currently in remand custody, being transported to court utilising a bus designated by UNICEF for the conveyance of children belonging to female inmates.
A complaint received by the CID alleges that prison authorities utilised this bus for transporting the ex Minister, notwithstanding UNICEF’s explicit directive that it should be exclusively allocated for the welfare of children of female inmates.
While it is noted that other individuals remanded alongside Rambukwella were transported via a standard prison bus, concerns have been raised regarding the preferential treatment extended to the former Minister in this matter.
March 19, Colombo (LNW): Over the weekend, Sri Lanka’s tourism industry reached a significant milestone as tourist arrivals exceeded 500,000 within the first three months of the year, with March alone surpassing the 100,000 mark.
This notable surge underscores the sector’s robust momentum towards recovery and growth, marking the first time since the onset of the pandemic that the country has achieved such levels of tourism activity within just two and a half months.
Last year, this milestone was reached in the second week of May.
Provisional data released by the Sri Lanka Tourism Development Authority reveals that from January 1 to March 14, the island nation welcomed a total of 517,808 international visitors.
Notably, the daily average arrivals for March rose to 6,500, culminating in the crossing of the 100,000 arrival threshold on March 16.
If this momentum persists, Sri Lanka is poised to achieve over 200,000 arrivals for the third consecutive month this year, a feat unprecedented since the onset of the Covid-19 pandemic.
However, a closer examination of weekly arrival data suggests that March may see a lower overall number of tourists compared to February.
In February, the weekly arrival average stood at approximately 55,000, whereas for March, it hovers around 45,000.
In terms of tourist demographics, the Russian Federation emerges as the leading contributor, constituting 15 per cent (13,699) of total arrivals, followed closely by India at 15 per cent, with 13,492 tourists.
Key source markets also include Germany, the United Kingdom, France, and China.
Notably, the tourism sector generated a cumulative revenue of US $687.5 million in the first two months of the year, marking a substantial 118.2 per cent growth compared to the same period in 2023.
In February alone, Sri Lanka recorded US $345.7 million in tourism revenue from 218,350 visitors, significantly contributing to the country’s foreign income and economic stability, particularly amidst ongoing challenges in global markets.
This figure represents a notable increase from the US $161.6 million recorded in February of the previous year.
March 18, Colombo (LNW): Showers or thundershowers may occur at a few places in Western and Sabaragamuwa provinces and in Galle and Matara districts in the evening or night, and mainly dry weather will prevail elsewhere of the island, the Department of Meteorology said in its daily weather forecast today (19).
Misty conditions can be expected at some places in Sabaragamuwa and Central provinces and in Galle and Kalutara districts during the morning, the statement added.
Marine Weather:
Condition of Rain:
Mainly fair weather will prevail in the sea areas around the island.
Winds:
Winds will be north-easterly or variable in direction and wind speed will be (15-25)kmph. Wind speed may increase up to (35–40) kmph at times in the sea areas off the coasts extending from Puttalam to Kankasanthurai via Mannar and from Hambantota to Pottuvil.
State of Sea:
The sea areas off the coasts extending from Puttalam to Kankasanthurai via Mannar and from Hambantota to Pottuvil can be moderate at times.
Meanwhile, Heat index, the temperature felt on human body is expected to increase up to ‘Caution level’ at some places in North-western, North-central, Eastern provinces and Mannar, Vavuniya, Monaragala, Rathnapura, Colombo and Gampaha districts.
The public is urged to stay hydrated and takes breaks in the shade as often as possible, check up on the elderly and the sick, never leave children unattended, limit strenuous outdoor activities, find shade and stay hydrated, wear lightweight and white or light-colored clothing.
The history and performance of Litro Gas Lanka Ltd demonstrate that privatizing this national pro ider of LPG in Sri Lanka is not a prudent course of action. This report aims to present a comprehensive analysis of the key reasons why the privatization of Litro Gas Lanka Ltd is unwarranted. The company’s historical background. current status. and proposed solutions for its growth will be examined.
Historical Background
The history of Litro Gas Lanka Ltd can be summarized as follows:
• Prior to 1995, the company was 100% owned by the Government of Sri Lanka (GOSL). • Tn 1995/96, 51% of the shares were sold to Royal Dutch Shell. leading to the establishment of Shell Gas Lanka Ltd. • ln 2010, Royal Dutch Shell sold back its 51% shares to the Government of Sri Lanka, which subsequently led to the creation of Litro Gas Lanka Ltd. • Since 2011, Litro Gas Lanka Ltd has been 99.9% owned by the Sri Lanka Insurance Corporation.
Current Status of Litro Gas Lanka Ltd
Litro Gas Lanka Ltd is a significant player in the Sri Lankan energy industry, operating one of Asia’s largest filling plants with the capacity to process I 00.000 domestic cylinders· refills per day. The Litro Gas Lanka network comprises 42 distributors. approximately 12,000 point-of-sale locations, and 1,500 home deli very hubs, serving over 4 million households and various commercial and industrial sectors.
Litro Gas Terminal Lanka (Pvt) Ltd
Litro Gas Terminal Lanka (Pvt) Ltd, the leading LPG storage facility in the country, is responsible for storage and filling facilities for LPG distribution. It was established in 201 O when the Sri Lanka Insurance Corporation acquired the Shell-owned LPG Storage Terminal in Kerawalapitiya. The terminal has a current capacity of 8,000 Mt and is fully automated. It is also the only company in Sri Lanka with a Central Mooring Facility.
Key Points
Several key points highlight the reasons for not privatizing Litro Gas Lanka Ltd.
Economic Contribution: In July 2022, the company received a long-term loan of USO 70 million from the World Bank to aid the government during a foreign exchange crisis. This loan, equivalent to Rs. 25.8 billion, was expeditiously repaid by December 30, 2022, in order to address the government’s pressing financial needs.
Resilience: Litro Gas Lanka Ltd swiftly recovered its business in a short period following an economic crisis, demonstrating its ability to adapt and thrive.
Revenue and Profitability: The company’s current average annual revenue stands at Rs. 75 billion, with an average annual profitability of Rs. 4-5 billion.
Dividends and Taxes: Since 2015, the company has paid a total of Rs. 13.4 billion in dividends and Rs. 27.6 billion in taxes.
Debt Management: Litro Gas Lanka Ltd obtained short term loan facility around Rs. 10 billion from commercial banks in 2022 and efficiently cleared all outstanding amounts. Presently, the company holds no outstanding loans and has no financial obligations to the national treasury or any commercial bank.
Financial Health: Litro maintains a current cash equivalent of Rs. 8.1 billion. ensuring its financial stability.
Labor Relations: The absence of trade unions within the company is a positive factor in maintaining operational efficiency.
Volume and Sales Data
Summary of Financials for 2015 – 2023
Proposed Solution
instead of privatization, a Joint Venture (JV) approach is recommended to enhance Litro Gas Lanka Ltd’s capacity and competitiveness.
Establishing a joint venture (JV) with a qualified credible management team that can safeguard employees’ rights and ensure the smooth and effective operation of the company
Infusion of advanced technology and systems by the JV can optimize operational efficiency
The JV can explore opportunities to introduce the Litro brand to new markets outside Sri Lanka and develop new products like LNG and CNG
Conclusion
The data presented supports the notion that privatizing Litro Gas Lanka Ltd may not be in the best interest of Sri Lanka. The company has a proven track record of contributing significantly to the government’s finances while maintaining financial stability. A JV approach offers a more favorable path to capitalize on the company’s potential for growth and innovation.
March 18, Colombo (LNW): The Asian Development Bank (ADB) has approved a $100 million loan to provide small and medium-sized enterprises (SMEs) in Sri Lanka more access to finance and build their resilience to external shocks, such as the economic crisis and climate change.
“SMEs play a critical role in Sri Lanka’s economy, contributing 52% to the country’s gross domestic product and employ 45% of the population,” said ADB Senior Financial Sector Specialist Manohari Gunawardhena.
“It is therefore important to provide SMEs, particularly women-led enterprises, with the necessary support to sustain and grow the sector’s contribution to the economy.
This project will provide working capital and improve SMEs’ access to finance, helping them expand operations and prepare for the changing environment.”
This sum will be received in December and disbursed as capital through the National Credit Guarantee Institution and distributed via 13 banks within the national banking system.
This approach will facilitate the implementation of a loan guarantee program for SMEs industrialists in the country. Additionally, it will enable a program that provides loans with subsidised interest rates.
ADB, through participating financial institutions, will open a $50 million line of credit for underserviced SMEs in the export, tourism, technology, agriculture, and manufacturing sectors.
It will establish a $500,000 special facility to cover guarantee subsidies for women-led SMEs. A gender gap assessment will be conducted with a view to improving women’s access to finance.
The project will build on the government’s equity contribution through the National Credit Guarantee Institution Limited (NCGI), which provides partial credit guarantees on loans to SMEs.
ADB will help the NCGI adopt procedures to effectively support SMEs including underwriting guarantees, risk management and risk-based pricing, and guarantee recovery operations.
The project will incorporate green finance elements through climate adaptation and mitigation measures for SMEs.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.
The project will help SMEs by enhancing access to finance and strengthening their capacity to adapt their business models to external changes, including those caused by climate change.
It is designed to particularly support women entrepreneurs who are often disadvantaged, as well as promote climate adaptation and mitigation activities. The implementation of both components is supported by ongoing technical assistance (TA), which was approved in January 2022.
