The country’s largest state-run LPG supplier, Litro Gas Lanka Ltd, along with its terminal operations under Litro Terminals (Pvt) Ltd, is set to continue its restructuring process by divesting shares to the private sector.
A senior official from the Ministry of Finance confirmed that the government intends to sell all or a majority of its shares in the company as part of an ongoing restructuring initiative. Bids for this process were called by the previous administration, and no action has been taken to cancel them. The official reiterated that the government remains committed to either a majority or complete divestment of its shares in Litro Gas Lanka Ltd.
This move aligns with the proposals set forth under the former administration and underscores the government’s continued commitment to restructuring state-owned enterprises (SOEs) within a broader strategic economic framework.
During the closing session of the Sri Lanka Economic Summit, held on Wednesday and organized by the Ceylon Chamber of Commerce, Deputy Finance Minister Harshana Suriyapperuma elaborated on the government’s approach to SOEs, without specifically naming any particular entity.
He explained that while certain SOEs would remain under government control, others would be privatized or transitioned into hybrid models such as public-private partnerships (PPPs).
“The objective is to assess commercially viable state enterprises and explore ways to enhance their value through private sector investment. Although some SOEs are financially sustainable, they have not fully capitalized on their operational scale, profitability, or market expansion potential,” Mr. Suriyapperuma stated.
As part of the restructuring process, eight bidders were shortlisted as of July 2024 by the previous administration for the acquisition of shares in Litro Gas Lanka Ltd and its terminal operations.
The shortlisted entities comprise leading international and regional energy players, including Vitol Asia, Bharat Petroleum, Siamgas and Petrochemicals Public Company, Bgn Int Dmcc, Bayegan Dis Ticaret, Confidence Petroleum India, OQ Trading Ltd, Tristar Transport, and a consortium consisting of Infinity Holdings and National Gas Company. These bidders have been invited to submit detailed proposals outlining their acquisition strategies.
Despite the privatization process being at an advanced stage, Litro Gas Lanka Ltd has demonstrated strong financial performance. Official data indicates that the company declared a total dividend of Rs.3 billion to the Treasury through its major shareholder, Sri Lanka Insurance Corporation. This included Rs.1.5 billion disbursed in October 2023, with an additional Rs.1.5 billion scheduled for disbursement in the coming period.
