Shell Gas under Govt wing

Shell Gas now fully under the wings of the government brought mixed reactions from businessmen in the private and public sectors, last week.

Senior Lecturer, Economics, University of Colombo, Prof. Sirimal Abeyratne said Sri Lanka should encourage more foreign investments and allow the private sector to play a major role in the businesses which will help boost the economy of the country.

“Sri Lanka should develop connectivity and gain competitive advantage if it is to be an energy hub. The country should emulate Singapore which has large multinational companies in its energy sector”, he said.

Managing Director, Chevron Lubricants Lanka PLC, Kishu Gomes said the LP Gas business in the country could be made more profitable provided that the business is managed without political interference.

“The new company should be managed by a professional team and not left to the fate of certain State entities which are running at a loss”, he said.

Immediate Past President, Federation of Chambers of Commerce and Industry of Sri Lanka, Nawaz Rajabdeen said the move by the government to buy Shell will benefit LP Gas consumers with a control on prices.

The Government on Wednesday signed the agreement to buy the remaining 51 shares of Shell Gas Lanka and 100 percent shares of Shell Terminals.

Shell was renamed Litro which will be managed by the Sri Lanka Insurance Corporation (SLIC). Litro will handle the import, storage and distribution of the LP Gas in the country.

Shell, a multinational entity of the Netherlands withdrew from its LP Gas business in Sri Lanka in keeping with the company’s global corporate policy.

A spokesman for Shell said that the decision to divest ownership of the company was taken as a strategic move to support the international business.

Gamini Senarath who heads the SLIC will be the Chairman of the new company.

(LF)