Jan 05, 2011 (LBO) - Lanka IOC, the Sri Lankan unit of Indian Oil Corp., plans to invest in expanding its distribution network this year after seeing sales grow last year with an economic recovery after the end of a war, a statement said."LIOC plans to invest in further expansion of its distribution network and product lines and to upgrade infrastructure in response to the growing demand for petroleum products in the country," it said.
The company said it would refurbish infrastructure at its terminal complex in the eastern port of Trincomalee and create additional facilities as part of its commitment to provide energy security to Sri Lanka.
“The year that just ended was a good one for the petroleum industry in Sri Lanka, with consumption growing six to seven per cent," LIOC Managing Director K. R. Suresh Kumar said.
"We expect this trend to continue, necessitating medium and long term investments in storage and distribution infrastructure.”
Sri Lanka's 30-year ethnic war ended in 2009 resulting in an economic recovery with the country growing at eight percent last year and forecast to grow at 8.5 percent in 2011.
Suresh Kumar said the industry would be on an even "sounder footing" if a "suitable pricing mechanism", appropriate duty structure and a facility for low cost loans for capital expenditure were put in place by the government.
He was referring to government price control of petroleum products which has caused losses for LIOC.
Lanka IOC lost 422 million rupees in the year to March 2010 down from 1,237 million a year earlier.
The statement said, LIOC which posted net revenues of 50.2 billion rupees in 2009-10, had topped the rankings of LMD 50, a business magazine index, for the third consecutive year
“We are proud to head the prestigious LMD 50 ranking of the largest listed businesses in the country,” Suresh Kumar said.
source - www.lbo.lk
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