Sri Lanka ends gas monopoly, offers tax breaks to investors

Published December 5th, 2000 - 02:00 GMT

Sri Lanka Tuesday, November 5, invited foreign and local investments into the liquified petroleum gas (LPG) industry with the ending of a five-year monopoly granted to the Anglo-Dutch firm, Shell. 

 

The Board of Investment (BOI) here said the monopoly granted to Shell will come to an end on Friday and thereafter the government was keen to see new investments into the LPG sector. 

 

"Any new entrants (to the industry) will be permitted to import, store and distribute LPG," the BOI said in a statement. "The BOI will make available tax concessions for any foreign investor." 

 

The granting of a monopoly to Shell together with rights to revise prices annually drew intense criticism from consumers, the opposition as well as sections of the coalition government of President Chandrika Kumaratunga. 

 

The first privatization project of President Kumaratunga's government was the sale of 51 percent of the country's state-run gas company to Shell International for $37 million.— (AFP)  

 

© Agence France Presse 2000  

© 2000 Mena Report (www.menareport.com)

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