Litro budgets Rs. 7.475 billion for activities missing from action plan

Litro Gas Lanka had included 113 activities worth Rs. 7.475 billion in its budget without incorporating them into its action plan, a subcommittee of the Committee on Public Enterprises (COPE) was told.

An audit official reviewing the company’s planning documents for 2026 recommended that the budget and action plan be linked through a coding system, allowing each activity to be tracked through implementation.

The observation emerged during a meeting examining Litro’s corporate plans, procurement arrangements and future goals up to 2028.

The subcommittee also heard that some projects were included in the budget before detailed feasibility assessments had been completed.

Responding to a question on project evaluation, a Litro representative said proposals were sometimes budgeted on the basis of a general assessment that they could benefit the company. Their feasibility was then examined during the year.

The representative cited a proposed palletising project that had received approval from the previous Board but had yet to begin. The current management was continuing to study the proposal because it was not fully satisfied about proceeding with the investment.

Officials reviewing the plans also drew attention to low financial and physical progress against capital expenditure allocations.

Litro explained that a major capital expenditure item—the recertification of its spherical gas storage tanks—was scheduled for the end of the year. The company said the work was essential and would be completed within the year.

The audit official recommended that Litro identify its most important operational projects, prioritise them and prepare a clear implementation programme.

The subcommittee was also told that information for reviewing progress had been presented to the Board only in August. Monthly reviews, or at least quarterly reporting, were recommended to help directors make timely decisions.

Planning documents required by the Department of Public Enterprises and the line ministry had been forwarded only in September, the official said.

A further recommendation was to prepare separate budgets for Litro Gas Lanka and Litro Gas Terminal Lanka, as they were separate legal entities. The terminal company’s figures had been included in the gas company’s budget.

The absence of a dedicated planning division was also identified as a shortcoming. The audit official recommended assigning responsibility for activities to individual officers rather than leaving accountability at divisional level.

Litro representatives said they would examine the proposal for a planning division. The subcommittee Chair asked the company to note the observations and address the weaknesses identified.