The Cabinet of Ministers has given the go-ahead to a proposal presented by President Ranil Wickremesinghe, in his capacity as the Finance Minister, with a view to ensuring an uninterrupted supply of liquefied petroleum (LP) gas in the country from January 2024.

Thereby, at its meeting on Monday (Aug. 28), Cabinet approval was granted to purchase 50% of the total supply of the existing contract from the current supplier of Litro Gas Lanka Ltd. as a reorder, pursuant to the provisions of government procurement guidelines, for an uninterrupted gas supply after December 21, 2023 until the completion of the company’s restructuring process.

The Government Information Department said the contract for the supply of 280,000 metric tons of LP gas to Litro Gas Lanka is scheduled to expire on December 31, 2023. Thus, the company has called for bids for the supply of LP gas for the period 2024-2025.

However, restructuring process of the company is already underway and it appears that entering into new agreements may adversely affect the restructuring process.

Accordingly, the Cabinet of Ministers gave the approval to the President’s resolution to purchase 50% of the total supply of the existing contract from the current supplier of Litro Gas Lanka Ltd. as a reorder in a bid to ensure an uninterrupted LP gas supply from January 2024.