Govt warns LAUGFS over Repeated Supply Failures

February 20, 2026 at 7:25 PM

Sri Lanka’s Trade Minister Wasantha Samarasinghe says the Government will not allow consumers to be inconvenienced amid supply disruptions linked to the private sector gas supplier LAUGFS Gas, insisting there is no national shortage of LP gas.

Speaking on the current situation in the domestic gas market, Samarasinghe said state-owned Litro Gas Lanka Ltd currently supplies the bulk of the market, while LAUGFS Gas PLC accounts for a significant share through its yellow cylinder distribution.

The Minister said LAUGFS does not operate under a continuous annual supply agreement and instead procures gas on a shipment-by-shipment basis, which has led to periodic disruptions.

He alleged that on several occasions the Government had extended support to facilitate imports through the Hambantota terminal, including in December 2024, allowing limited volumes to be brought in and distributed locally under agreed conditions.

According to Samarasinghe, the Government had also permitted additional metric tonnage to be imported and released to the market during periods of delay, including after a vessel was unable to unload in Colombo due to adverse weather and was diverted to Hambantota.

“There is no gas shortage in the country,” the Minister said, adding that Litro has been instructed to supply 38,000 metric tons for the coming month to meet national demand.

He noted that Sri Lanka’s daily gas release averages around 1,200 metric tons, but this has now been increased to about 1,500 metric tons per day to stabilise the market and ease public concerns.

Samarasinghe said consumers who use LAUGFS’ yellow cylinders cannot legally refill them with Litro’s blue cylinders due to regulatory and safety requirements, creating difficulties for affected households.

To address the issue, he said Litro plans to introduce additional blue cylinders to the market from March 12, enabling consumers facing shortages to obtain gas without disruption.

The Minister warned that if a company fails to supply gas to consumers who have already paid a deposit for cylinders, it has a responsibility to either provide the gas or refund the deposit.

“If they cannot supply gas to their own cylinders, they must return the money. Consumers should not be penalised,” he said.

Samarasinghe further alleged that attempts were being made to pressure the Government into relaxing regulations to allow unrestricted sales from the Hambantota terminal, but stressed that the administration would not permit any company to operate outside the law.

He said the Consumer Affairs Authority has been notified to monitor the situation and ensure that consumers are not misled or unfairly treated.

The Minister urged the private supplier to expedite its import arrangements and resume uninterrupted distribution, warning that the Government would take necessary steps to protect consumers if supply issues persist into March.

He maintained that the state-owned gas supplier is prepared to expand distribution and release additional cylinders if required to prevent inconvenience to the public. (Newswire)