The Cabinet granted approval to the purchase of shares of Shell Gas Lanka Limited (SGLL) and Shell Terminal Lanka Limited (STLL).

The parent company of Shell Gas Lanka Limited (SGLL) and Shell Terminal Lanka Limited (STLL) has intended to exit from LP Gas business in Sri Lanka as part of their wider review of ownership options.

They had indicated their willingness to sell 51% of the shares of the SGLL and 100% of the shares of the STLL to the Government.

Since purchasing these shares would be advantageous to the country, Cabinet approval was granted to purchase the above shares and the transaction is to be financed through Bank of Ceylon, Peoples' Bank, National Savings Bank and the Sri Lanka Insurance Corporation.

The Cabinet Appointed Negotiating Committee (CANC) headed by Secretary to the Prime Minister has recommended to purchasing these shares at a cost of US $63 million.

The Government intends to retain at least 51% of these shares to keep the controlling interest and issue the balance to the public, enhancing investment opportunities to the private sector.