Distribute 60% of daily gas output to Colombo & Gampaha; COPE recommends to Litro
The Committee on Public Enterprises (COPE) has recommended that Litro distribute 60% of its daily output of LP Gas Cylinders to the Colombo and Gampaha Districts.
The large population and limited access to alternatives were cited as reasons for the recommendation, a statement noted on Friday.
The management of Litro Gas Lanka Ltd has been summoned before the Committee on Public Enterprises (COPE) on Friday (20) to inquire into the current gas shortage and related solutions.
While expressing views in Parliament on Thursday (19) on the need to expedite the gas distribution process Prime Minister Ranil Wickremesinghe instructed to summon the Litro Gas before the COPE to look into the matter.
Chairman of Litro Eng. Vijitha Herath told COPE that there is a shortage of 3.5 Million gas cylinders in the local markets, and from two gas tankers that reached the country 80,000 gas cylinders are being distributed daily via a network of 42 Chief distributors and Sub-agents.
He said the inclement weather made it difficult to connect the buoy in Muthurajawela, and thus the vessel was moved to the Colombo Port resulting in a delay in the distribution process.
The Litro Chairman also said that USD 160 Million from the Indian Credit Line was allocated for gas purchases, and Litro will be using USD 120 Million of that amount.
He said another USD 80 Million will be available from the World Bank, and that will be used for Term Tender purchases of LP Gas.
COPE had recommended the Chairman of Sri Lanka Insurance Corporation, and the Finance Secretary explore the possibility of using SLIC reserves to provide financial support to Litro, considering the fact that Litro comes under the purview of SLIC.