Govt. to purchase LP gas for Litro under existing contract to avoid impact on restructuring

The Cabinet of Ministers has decided to purchase LP gas for Litro Gas Lanka Company under the existing contract with the current supplier for the period 2024-2025.
Government believes that entering into new agreements to purchase LP gas with a new suppliers could adversely impact the ongoing restructuring process of Litro Gas Lanka Company.
The contract for the supply of 280,000 MT of LP gas to Litro Gas Lanka Company is scheduled to expire on December 31, 2023 and bids have been invited for the supply of gas for the period 2024-2025.

However, the Cabinet Office said, “…the restructuring process of the company (Litro Gas) has already started and it appears that entering into new agreements may adversely affect the restructuring process.” 
Litro Gas is one of the state-owned entities identified for restructuring.

“As a result, Cabinet of Ministers approved the proposal presented by the President in his capacity as the Minister of Finance, Economic Stabilisation and National Policies to take necessary measures to purchase 50 percent of the total supply of the existing contract from the current supplier as a re-order as per the provisions of the government procurement guidelines for uninterrupted supply of gas till the completion of the restructuring process after December 31, 2023,” the Cabinet Office said.