The Hon. (Dr.) Anil Jayantha

¶ 01 Hon. Speaker, the answer is as follows.

¶ 02 (a) (i) Litro Gas Lanka Limited imports (offloaded cargo) in metric tons: - 2022: 251,181 - 2023: 300,159 - 2024: 330,696

¶ 03 (ii) The company’s procurement is under the Standing Cabinet Appointed Procurement Committee with final approval by the Cabinet of Ministers. A two-year contract (approved by Cabinet) operated from 01 March 2020 to 28 February 2022. Orders placed in February 2022 under that contract arrived in March 2022.

¶ 04 From April to June 2022, due to the national emergency and foreign exchange constraints, a Standby Letter of Credit with 30 days’ usance could not be issued. Therefore, with Cabinet approval and considering dollar reserves, minimum monthly quantities were obtained from the incumbent supplier to ensure continuity.

¶ 05 In May 2022, the current procurement process was concluded and Cabinet approved proceeding with Siam Gas Trading Pte. Ltd. (Thailand) at a contract price per metric ton and at USD 96 per unit price. However, due to forex limitations and the crisis then prevailing, Litro could not open SBLCs as required. The supplier also failed to submit voyage details per tender requirements. Consequently, contract signing was delayed and the supplier repeatedly demanded SBLC issuance to nominate vessels. As the 2022 contract was neither concluded nor activated for July–December, Litro sought monthly 15,000 MT from OQ Trading and Siam Gas Trading; only those two responded. Suppliers indicated inability to meet full monthly needs. Siam offered 6,600 MT at USD 112 (vs. 15,000 MT requested); OQ Trading offered 100,000 MT at USD 129. Though not ideal, given exigencies and to secure supply, the matter was referred to the authorities including the Ministry and the Prime Minister’s Office.

¶ 06 (iii) Accordingly, on 08 June 2022, Siam Gas was selected for award, but the award was not formally made because, given the economic situation, the Government could not issue an irrevocable Letter of Credit as per contract terms, and the Central Bank/Treasury could not facilitate. The case was referred to the Cabinet-appointed committee to cancel the earlier process and initiate a new procurement with manageable payment terms, including deferred payment, re-shipment payment and payment in LKR, etc.

¶ 07 On 14 June 2022, Cabinet decided to consider steps to ensure uninterrupted LPG supply by concluding the ongoing tender with manageable payment options as per the 08 June Cabinet memorandum. Subsequently, OQ Trading was engaged for 100,000 MT at USD 129.

¶ 08 In 2023 (January and December), international competitive bidding was conducted; in line with Government procurement guidelines and final Cabinet approval, award was made to OQ Trading at a contract price per MT and at USD 118.68. In 2024, due to SOE restructuring, the 2023 contract was extended twice by six months each under approval of the State-Owned Enterprise Restructuring Unit, and Cabinet approval obtained accordingly.

¶ 09 For 2025 (January–December), competitive bidding was conducted and, after Cabinet approval, award was made to OQ Trading at USD 118.18 per MT under Government procurement guidelines.

¶ 10 For 2026 (January–December), international competitive bidding was conducted and, after Cabinet approval, award was made to Geogas Trading SA at USD 137 per MT under Government procurement guidelines.

¶ 11 In every year, necessary approvals for LPG procurement were obtained, with final authority resting with the Cabinet of Ministers.