MONETABRIEF – Sri Lanka's Laugfs Gas has sought permission to use its terminal in Hambantota to import liquefied petroleum gas, which has restrictions linked to re-exports, the firm said.
The terminal had received capital goods import duty relief from the Board of Investment under is Commercial Hub rules. Laugfs ability to use the terminal for local imports was limited to 40 percent of re-export volumes.
During the Covid-19 pandemic and Sri Lanka's sovereign default and forex shortages, the terminal had lost its re-export business and it had not been able to maintain the required levels volumes to cover local clearing.
"The resulting regulatory restrictions have limited the terminal’s availability for domestic supply despite its substantial storage capacity," Laugfs said in a statement.
"Temporary permission previously granted by the Ministry of Finance under Emergency Regulations ceased when those regulations ended."
LAUGFS Terminals Ltd built at a cost of 65 million US dollars also has 30,000 metric tonne storage capacity.
Laugfs has sought three months temporary permission to use the Hambantota terminal for domestic supply.
Laugfs was also working with the Board of Investment, Ministry of Finance, Sri Lanka Customs, the Department of Imports and Export Control to move out of the Commercial Hub states and pay the applicable duties and taxes.
The chairman of the BoI had informed the company that following instruction from the President, he had written to the Secretary to the Treasury, requesting the approvals to be facilitated within a week.
"These approvals remain pending," the firm said. " LAUGFS appreciates the Government’s intervention and the cooperation of the relevant authorities."
Sri Lanka is facing LPG shortages in 2026 amid delayed shipments. (Colombo/Nov05/2026)