Gas Move

Nov 03, 2010 (LBO) – The state-run Sri Lanka Insurance Corporation (SLIC) will help operate a liquid petroleum gas business the government acquired after buying out a majority stake held by Shell, a statement said. The LPG business has been rebranded the ‘Lithro’ gas company, the government statement said.

Gamini Senarath, chairman of Sri Lanka Insurance Corporation, and additional secretary to the president, has been appointed chairman of Lithro.

Piyadasa Kudawalage has been appointed Lithro’s chief executive officer and a new board of directors will be appointed in the next 15 days.

Laugfs, a private firm that is the only other LPG supplier in the island, had previously expressed interest in buying or managing the Shell unit.

Lithro will handle the import, storage and distribution of LP gas that was previously done by the Shell unit, Shell Gas Lanka.

The government Wednesday bought a 51 percent stake in the unit of Royal Dutch Shell in the island for 63 million US dollars, officials said. The government already held a 49 percent stake, and a 100 percent stake in a storage terminal company.