Litro says growth trajectory to continue; gives Rs. 3 b dividend to Treasury

Monday, 29 January 2024 01:10 - - {{hitsCtrl.values.hits}}

Litro Chairman Muditha Peiris

Litro Gas Lanka Ltd. has recently declared an impressive contribution of Rs. 3 billion in dividends to the Treasury through its primary shareholder, Sri Lanka Insurance Corporation. This consists of Rs. 1.5 billion made in October 2023 and another Rs. 1.5 billion paid on 26 January 2024.

Litro said this noteworthy gesture comes at a crucial time when Sri Lanka is actively seeking to boost state revenue to attain stability in the aftermath of a pandemic followed by an economic downturn.

Furthermore, Litro has demonstrated its commitment to national empowerment by also paying Rs. 2.6 billion in taxes and duties, solidifying its position as one of the few profitable state-owned enterprises. Despite facing challenges, including a shortage of foreign reserves that affected its supply chain, Litro swiftly resolved the issues.

Chairman Muditha Peiris said: “We are pleased to announce that the fiscal year 2023 has proven to be profitable for Litro, despite economic challenges and hardships. We are dedicated to ensuring that LPG remains affordable for our existing customer base while expanding our reach to the rural sector in the upcoming financial year. We are committed to ensuring that a safe product is delivered to the kitchens of all households.”

He highlighted the company’s focus on various aspects of safety, including educational initiatives to promote the importance of switching to LPG as a safer and healthier alternative.

Litro’s resilience and growth can be attributed to the strategic efforts of the management under the guidance of the Chairman who took over the company during a turbulent period. Under him, the company has accomplished a remarkable turnaround that has been recognised, affirmed and awarded both locally and globally.

The turnaround entailed ensuring a steady and uninterrupted supply of LPG to industries and households in turn ensuring convenience as well as safeguarding livelihoods across many key industrial segments.

As the largest stakeholder in the local LPG market, Litro managed to procure from the most technically qualified, competitive, and cost-effective suppliers to eliminate shortages promptly. The selection of a supplier has been a key priority, focusing on their consistent capability to meet supply requirements and their commitment to offering a competitive price, thereby ensuring both reliability and cost-effectiveness. Litro adopted a pricing mechanism aligning with global market rates to ensure that benefits from price fluctuations are reflected in the prices of its products. These pioneering efforts have empowered the industry as well as local enterprises and households dependent on LPG.

Especially in the past years, Litro has emerged as a success story for how State-Owned Enterprises can be steered to profitability while prioritising welfare. The company serves as a blueprint for growth and recovery for SEOs dispelling the misconception that privatisation is the only solution. As Litro contributes significantly to the national treasury, it plays a crucial role in supporting the country’s economic recovery and stability.