Sri Lanka’s Litro Gas records exceptional performance despite pandemic challenges
Sri Lanka’s national LPG provider Litro Gas has reportedly ended 2020 with exceptional financial results despite economic adversity and a challenging environment re-affirming the company’s position as the industry leader and a formidable entity in the Sri Lankan corporate environment.
Although the global energy industry was impacted by the pandemic during the period under review, Litro Gas Lanka Ltd. and Litro Gas Terminal Lanka Ltd. Chairman and CEO, Anil Koswatte has been quoted as saying that Litro Gas was able to achieve these results while passing on an unwavering economic benefit to the people through stabilised LPG prices.
According to reports, Litro Gas has reported a Profit Before Tax of Rs. 1,436 million for the year ended 2020.
For Litro Gas, a volume increase of 3% has impacted revenue on a positive note. However, the domestic segment price reduction of 11% (in 2019, the Annual Average stood at Rs. 1,673; and in 2020, the Annual Average stood at Rs. 1,493) has caused a negative impact on the company’s revenue, the Daily FT has reported.
Operating within an industry that is price-controlled in keeping with easing the economic burden on the people as per President Gotabaya Rajapaksa’s economic policy framework, ‘Vistas of Prosperity and Splendour’ (People-Centric Economic Development), Litro Gas has been consistently maintaining the cap on prices of domestic LPG. The result has been an unbroken economic benefit given to the consumers, Koswatte has further stated.
“Given the usage of domestic LPG as the primary cooking fuel in Sri Lanka, it was imperative for the company to maintain stable prices throughout the period under review, passing on a considerable economic benefit of Rs. 4.5 billion to our consumers.”
This was more evident than ever before, given the lockdown conditions of the first COVID-19 outbreak.
As the world attempts to recover economically from the pandemic, Litro Gas firmly believes that innovation and introducing new solutions are the way forward to consolidate its position as the market leader in the Sri Lankan LPG industry, local media reports have stated.
Koswatte has added that new products such as pipe borne LPG for homes and inter-fuel innovative solutions that offer businesses the opportunity to go for LPG as a clean and efficient energy source have been among the services pioneered by the company.
OSL take:
Many Sri Lankan companies have posted impressive financial results despite facing the impact of the global Covid 19 pandemic. It is indicative of the strength and growth of the country’s economy. Sri Lanka’s economy has shown great resilience to external and internal challenges through the years and is once again on the path to recovery after facing the impact of the Covid 19 pandemic. The government of Sri Lanka is engaged in an aggressive development programme aimed at taking the country to the next level of development while also working to improve the ease of doing business environment. All these moves have resulted in the expansion of business/investment opportunities in the country. Sri Lanka is also fast becoming a business hub in the South Asian region given it’s geographical positioning in the Indian ocean and the many trade agreements as well as trade concessions enjoyed by the country. Foreign businesses could therefore confidently explore the growing opportunities in Sri Lanka.
| Article Code : | VBS/AT/20210614/Z_7 |