An Echelon Media Company
Friday October 9th, 2026

Sri Lanka’s mysterious gas explosions become nobody’s baby

ECONOMYNEXT – A distressing sight in the village of Waligamuwa in Sri Lanka’s central district of Matale last weekend brought home a sombre truth: that lofty ideals such as accountability are perhaps destined to remain abstract concepts and not much more.

Villagers had gathered to mourn 53-year-old Ashoka Priyangani, a mother of four who’d succumbed to burn injuries from a cooking gas-related explosion in her own kitchen. Her family, friends and neighbours were seen congregated round the coffin, angrily protesting and demanding justice from wherever it might come.

The unsuspecting Priyangani had been trying to cook as usual when an explosion caused her severe burn injuries that would soon prove fatal. Her family had rushed her to Kandy hospital, where she died leaving behind a family of five.

Priyangani’s grieving widower now has but one goal: to take both the government and the gas company to court.

The liquid petroleum (LP) gas explosion that ended Priyangani’s life was no isolated incident. A wave of such explosions, fires and related incidents in the last 48 days has shaken Sri Lankans, a vast majority of whom are already battling worsening crises across multiple fronts.

According to police, nearly 730 incidents have been recorded from November 01 to December 15. Of these, 24 explosions were due to gas leaks directly from the cylinder while the rest were, according to authorities, due to subpar cookers or accessories such as regulators and hoses.

A majority of the incidents were linked to LP gas sold by the state run Litro Gas Lanka Ltd.  Litro maintains a duopoly on cooking gas supply in Sri Lanka with Laugfs Gas (Pvt) Ltd.

“Can’t the government or the Consumer Affairs Authority (CAA) advise the public to stop using gas until they clear this mess up?” news footage showed a relative of Priyangani’s as saying.

Over six weeks after the first explosion, Sri Lanka’s Court of Appeal on Friday (17) ordered the gas companies to recall LP gas cylinders in the market and replace them free of charge with cylinders approved by the Sri Lanka Standards Institute.

The court also ordered that both Litro and Laugfs maintain a mix of 70 percent butane and 30 percent propane in the LP gas cylinders they sell, following unverified speculation that a change in composition was the reason for the explosions.

Experts have hypothesised that increasing the propane content of the cylinder to 50 percent had resulted in high pressure which had led to leaks from the cylinder. However, this has yet to be proven scientifically.

Related: Sri Lanka Court of Appeal orders LP gas companies to recall cylinders: report

The court orders notwithstanding, no one has yet taken responsibility for the series of reported incidents let alone the death. Authorities have also yet to determine the exact cause of the explosions, and, despite the existential threat posed to millions of Sri Lankans, critics claim, no concrete steps appear to have been taken.

Deepening mystery

Glass-topped gas cookers exploding appears to be a fairly common phenomenon in India, Pakistan and some East Asian countries. One theory put forward by some experts is that this is due to the ignition/pilot light firing up – under the glass – as the knob does not come out after fire is reduced or shut down. It is pushed in.

The knob sometimes doesn’t come out due to dirt in the mechanism, but why this is suddenly the case appears to be a mystery. It may be because there was an earlier bad gas stock with oil residues which was brought due to CAA price controls and it clogged up the works, analysts have hypothesised.

If the alleged change in composition change is indeed to blame, analysts say, it is definitely a fallout of the price controls.

Economic interventions leading to wrong incentives for agents has led to unintended consequences as is typical, critics have argued.  However, the gas companies have operated for decades without much trouble, so why now appears to be the biggest question.

Total inaction

Public confusion over the bizarre explosions is rising and frustration over the apparent lack of accountability appears to be setting in the face of alleged government inaction.

A group of ruling Sri Lanka Podujana Peramuna (SLPP) members were seen praying at the Seenigama Dewalaya earlier this week, seeking divine retribution on the gas companies who had “endangered the lives of consumers”. Short of this, no concrete action appears to have been taken, critics say.

The Consumer Affairs Authority (CAA) has also largely remained mum about the explosions though parliament has seen heated arguments over the matter, even as explosions continue in various parts of the country.

“Nobody tells with any clarity about what is really wrong with gas,” SLPP MP Anura Priyadharshana Yapa told the media this week when he was asked to comment. Yapa is now critical of the government.

“If it is in another country, the board of directors (of the gas company) would have been dragged by their ears and arrested. Now they pretend as if they don’t know anything. This will lead the country to anarchy,” he said.

Friday’s Court of Appeal decision saw the gas companies ordered to revert to the earlier 30-percent propane composition and also have the Sri Lanka Standards Institute oversee the quality of gas being distributed in the country.

Critics, however, claim that the damage has already been done.

Already the two gas suppliers have ceased distribution in the market. Many consumers have now switched to kerosene. The demand for kerosene has risen by 100 metric tons in the past two months, the state-run Ceylon Petroleum Corporation (CPC) said.

The LP gas shortage has already hit Sri Lanka’s hotels, restaurants and canteens hard.

Asela Sampath, the chief of the All Island Canteen Owners’ Association (AICOA,) said on Friday that more than 80 percent of canteens and hotels will be closed from Saturday (18) onward as a result.

Meanwhile, an LP gas shipment from Bangladesh had been docked in the Colombo port owing to a quality issue. The government later directed Litro not to buy the consignment as it does not meet the standards. However, on Friday, the Secretary to the Ministry of Technology reportedly granted permission o unload gas after he tested a sample aboard the ship.

Allegations and counter allegations

“We cannot ascribe a monetary value to a life that was lost. We have asked these companies to do justice by them. We will also take part in that,” Consumer Affairs State Minister Lasantha Alagiyawanna told the media this week.

“We are doing our best to solve this matter as quickly as possible.”

Litro, for its part, rejects the government’s allegations. The state-run gas company maintains that it had nothing to do with the recent spate of explosions.

“It’s too early to comment on who will take responsibility for the death as investigations show a completely different result as opposed to a gas explosion. So further investigations are going on,” a Litro official told EconomyNext requesting anonymity as they were not authorized to comment on the matter.

Meanwhile, police confirmed that Priyangani’s death was due to a gas explosion, but noted that investigations are still under way to determine the exact cause of the incident.

“According to hospital reports, the patient had died due to severe burns from the incident. The gas pipe and other [accessories] have been sent to the government analyst for a report,” police said in a statement.

Police also said it was suspected that the end of hose connecting the cylinder to the stove had become loose and a leak had occurred while the stove was already lit. The fire must have gone through the pipe because the gas supply had not been cut off from the regulator, police said.

According to writer and analyst Vinu Wijesekara, Sri Lanka consumes over 440,000 metric tons of LP gas annually. Approximately 42% of the population exclusively uses gas cylinders for domestic purposes while 43% use firewood alongside LP gas and 13-15% of the population exclusively uses firewood, Wijesekara wrote to the privately owned Daily FT in 2018.

Litro controls 80 percent of the market while only other competitor Laughfs controls the rest.

The government has contemplated plans for the CPC to open another state-owned LP gas company, but the plan has been put on hold due to financial constraints of the country, which is facing an increasing risk of sovereign debt defaults.

Legal perspective

“This unfortunate death could have been prevented if the authorities had taken necessary and timely action to monitor the quality of gas cylinders & ensure the safety of consumers,” Human Rights lawyer Bhavani Fonseka told EconomyNext.

“Questions must be asked as to why authorities failed to take action that could have prevented the explosions.”

Fonseka, a government critic, also said relevant officials must be held to account and the affected parties should consider making a police complaint so that an investigation takes place that is the first step pertaining to criminal action against those responsible.

“Additionally, affected parties can also explore filing a case in the Supreme Court in terms of violating their fundamental rights. These are some measures that can be taken to obtain redress and justice for the victims.”

Questions must also be asked pertaining to the regulatory framework governing gas cylinders and why authorities were unable to ensure the safety that is required of such products, she said.

“Recent months have also seen officials formerly with the Consumer Affairs Authority commenting on discrepancies with such entities and the need for urgent reforms. Questions should be asked as to whether such reforms have taken place and the impact on the rights of citizens,” she said.

“It is incumbent on the opposition, civil society and media to keep attention on this issue and insist that there is a thorough investigation and accountability. Public pressure is also required to ensure the state and private actors adhere to quality control standards and that the rights and safety of consumers are given priority,” she added. (Colombo/Dec18/2021)

Reported by Shihar Aneez, Mahadiya Hamza and Chanka Jayasinge

Sri Lanka stocks close up, ASPI gains 0.41-pct

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange closed higher on Friday, CSE data showed, with the benchmark All Share Price Index moving up 0.41 percent.

The ASPI was up 82.57 points at 20,316.91, while the more liquid S&P SL20 was up 0.45 percent, or 26.19 points, at 5,788.75.

The ASPI ended the week down 496 points from last Friday, amidst a mixed week of trading.

Positive contributors to the ASPI were Dialog Axiata (up 0.91 percent at 44.50 rupees), Hatton National Bank (up 0.93 percent at 379.00 rupees), Commercial Bank of Ceylon (up 0.38 percent at 200.00 rupees), Richard Pieris and Company (up 4.30 percent at 26.70 rupees), and Laugfs Gas (up 7.35 percent at 40.90 rupees).

SMB Finance (down 9.09 percent at 1.00 rupee), LOLC Holdings (down 1.25 percent at 415.25 rupees), Haycarb (down 1.37 percent at 198.50 rupees), and Industrial Asphalts (Ceylon) (down 16.67 percent at 0.50 rupees) were top negative contributors.

Market turnover was 1.05 billion rupees. Diversified financials led turnover with 233.69 million rupees, followed by capital goods with 200.09 million rupees.

During the session, crossings in Lanka Milk Foods (LMF) in the first half of the trading day drew market interest, Raynal Wickremeratne, Head of Research and Strategy at NDB Securities, said.

“Usually 20,000 is also a psychological limit,” Wickremeratne said. “When it comes back closer to that, people also might feel like it’s worth buying, so that’s why sometimes coming close to that you might have a bit of a move.” (Colombo/Oct09/2026)

Continue Reading

Sri Lanka Customs’ September revenue exceeds target by 32-pct

ECONOMYNEXT – Sri Lanka Customs exceeded its September target by 32.1 percent, while the revenue in the first nine months of 2026 jumped around 22 percent compared to the same period last year, official data showed.

Customs’ September revenue target was set at 195.6 billion rupees. However, the revenue-collecting body collected 258.3 billion rupees that month, exceeding the target by nearly a third, according to official data.

It also exceeded the cumulative target for the first nine months by 29.2%, achieving 2,117 billion rupees.

Last year, Customs collected a record 2,551 billion rupees in revenue, exceeding a revised target of 2,241 billion rupees for the year and achieving 64.2% higher revenue than the previous year’s revenue of 1,553 million rupees.

Customs has set a revenue target of 2,207 billion rupees for this year, 13.5% less than last year as it expects a significant decline in car imports. Data showed it achieved 95.9% of this year’s target in the first nine months.

Analysts expect the revenue collecting body to achieve its 2026 full year target by mid-October,

Sri Lanka Customs’ revenue jump is largely due to stronger enforcement, improved valuation practices, and a rebound in import volumes after years of contraction.

Following the 2022 economic crisis, imports fell sharply as the country imposed restrictions to conserve foreign exchange.

However, with the stabilization of reserves, the relaxation of certain import controls, and a steady recovery in consumer demand, customs collections from import duties, excise, and other levies have risen.

Officials note that tighter monitoring of under-invoicing and misdeclaration of goods has also contributed to boosting state revenue.

The combined effect of increased import activity, currency movements, and stricter enforcement has positioned Customs as one of the top revenue sources for the Treasury in 2025, providing a vital cushion as the state works to meet fiscal targets under the IMF-supported program. (Colombo/October 09/2026)

Continue Reading

IESL, Dialog open Sri Lanka entrepreneurs challenge

ECONOMYNEXT – The Institution of Engineers, Sri Lanka (IESL) and Dialog Axiata have launched the IESL National Startup Challenge, for aspiring entrepreneurs to transform innovative ideas into commercially viable, investment-ready startups.

The competition invites Engineering undergraduates, practitioners and participants in an Open Category for Non-Engineers to submit ideas across 12 innovation verticals.

“The IESL National Startup Challenge is designed to turn innovative ideas into viable businesses by connecting aspiring entrepreneurs with industry expertise, mentorship and continuous practical support,” Eng Jasmine Nanayakkara, Chairperson of the Entrepreneurship Forum at the Institution of Engineers, Sri Lanka, said.

“By encouraging our engineers and aspiring founders to create, commercialise and scale solutions, we aim to contribute to new ventures, new opportunities and meaningful job creation for Sri Lanka’s skilled and educated next generation.”

Participants will progress through idea development, pitching, incubation, prototyping, validation, minimum viable product development and business scaling, supported by industry experts, mentors and ecosystem partners.

The programme will culminate in a Top 10 selection, with the first-place winner receiving an award of 1 million rupees.

Each of the Top 10 teams will receive a Dialog Digital Startup Support Package valued at 250,000 rupees, comprising selected Dialog digital products and services.

Dialog is providing technical expertise, mentors and digital resources to help participating teams develop, validate and scale their solutions.

“Dialog is extending its digital capabilities, mentorship and ecosystem support to help promising teams progress from concept to validation and investment readiness,” Dialog Axiata said.

The National Startup Challenge also brings together a network of partners, including The Ceylon Chamber of Commerce as Ecosystem and Mentoring Partner, Helago as Official Mobility Partner, Helakuru as Official Digital News Partner, and Real Life as Official Climate Action Partner.

Applications are now open via www.iesl.lk/announcements, giving aspiring entrepreneurs an opportunity to access the resources and funding they need to succeed. Applications close on 16th November 2026. For more information, contact mgr.pub@iesl.lk / 071 109 4393. (Colombo/Oct9/2026)

Continue Reading

Sri Lanka stocks trend higher, ASPI up 0.86-pct

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange opened higher on Friday, CSE data showed, with the benchmark All Share Price Index moving up 0.86 percent.

The ASPI was up 174.62 points at 20,408.96, while the more liquid S&P SL20 was up 0.86 percent, or 49.77 points, at 5,812.33.

Positive contributors to the ASPI were Commercial Bank (up 0.88 percent at 201.00 rupees), Dialog Axiata (up 1.59 percent at 44.80 rupees), Distilleries Company of Sri Lanka (up 1.76 percent at 52.00 rupees), and Hatton National Bank (up 1.20 percent at 380.00 rupees).

SMB Finance (down 9.09 percent at 1.00 rupee), Haycarb (down 0.75 percent at 199.75 rupees), Malwatte Valley Plantations (down 1.79 percent at 55.00 rupees), and Odel (down 4.04 percent at 9.50 rupees) were top negative contributors.

Market turnover was 343.62 million rupees. Capital goods led turnover with 77.51 million rupees.

E.B. Creasy & Company PLC announced that it has executed a corporate guarantee of 50 million rupees with effect from September 30, 2026, on behalf of its subsidiary, E. B. Creasy Logistics Ltd, guaranteeing banking facilities obtained by the company. The company stated that the delay in making the disclosure was due to a delay in receiving official notification from the bank on the execution of the guarantee. (Colombo/Oct09/2026)

Continue Reading

Sri Lanka passes controversial Anti-Corruption amendment amid IMF, Opposition warnings

ECONOMYNEXT — Sri Lanka’s Parliament on Thursday passed the Anti-Corruption (Amendment) Bill with amendments and without a vote, despite concerns raised by the opposition, civil society, and the International Monetary Fund (IMF).

The legislation amends the Anti-Corruption Act, No. 9 of 2023, a landmark piece of legislation which was adopted to align Sri Lanka’s domestic laws with international standards, particularly the United Nations Convention Against Corruption (UNCAC).

The legislative changes had also drawn caution from the International Monetary Fund.

IMF Mission Chief for Sri Lanka Evan Papageorgiou previously warned that proposed amendments risked weakening key transparency safeguards, particularly around the asset declaration framework and public ownership registers, which form part of governance benchmarks under the country’s economic reform program.

Opposition warns of weakened oversight

The main opposition Samagi Jana Balawegaya (SJB) argued that the amendments create loopholes that shield public officials from scrutiny.

SJB Parliamentarian Mujibur Rahman pointed out that under the new provisions, public access to asset declarations of public officials is limited solely to filing formal complaints, rather than allowing scrutiny by researchers or journalists, backed by penalties of up to a one-year prison sentence and a 100,000-rupee fine.

“Because of this harsh penalty, no one will come forward to look into these matters. Knowing that this amendment could subject them to a 100,000-rupee fine and prison time, everyone will be discouraged from probing further,” Rahman said.

Rahman criticized raising the threshold for state-owned enterprises requiring asset declarations from a 25-percent government shareholding to over 50 percent, which excludes partially state-owned entities.

He raised concerns over the removal of declaration requirements for household cohabitants and the exclusion of bodies such as the National Olympic Committee.

There were several issues with the new legislation, he pointed out, including restricting the manner in which publicised asset declarations can be used by the public, failing to provide a clear definition regarding the redaction or removal of information disclosed in asset declarations, and removing the requirement to declare the assets and liabilities of persons cohabiting in the same household.

“Why are you now bringing these amendments to that Act? The primary objective you initially proposed in bringing amendments to this Act was specifically to shield ministers, MPs, and public servants by concealing their assets and liabilities.”

“You have compromised the very public mandate you received. These amendments turn their back on that mandate. You have discarded the transparency and accountability demanded by that mandate. That is why the assets and liabilities of your ministers and MPs became a subject of debate in recent times.”

Allegations were raised against National People’s Power ministers and MPs when they the law first required them to make asset declarations.

“How was so much wealth acquired? It was precisely because of those allegations that you sought a shield to ensure that the assets and liabilities of ministers, MPs, and public officials would not be openly discussed.”

Following public outcry and opposition from civil society organisations, the government was forced to remove ministers and MPs from that shield and restrict that protection solely to public officials, the legislator said.

A redacted copy of a public official’s assets and liabilities can be obtained under the amended Act; but according to Section 11(2) under the new amendment, it can only be obtained strictly for the purpose of lodging a complaint.

“You cannot obtain copies to conduct investigative journalism or carry out research. And if someone is deemed to have “misused” it, it becomes an offence punishable not merely by a fine of 100,000 rupees, but by imprisonment of up to one year!”

“Defamation lawsuits can already be filed to claim damages. While such laws already exist, why introduce this new provision?”

“Because of this harsh penalty, no one will come forward to look into these matters. People will be intimidated. If someone tries to investigate whether a public official has illicitly acquired wealth, knowing that this amendment could subject them to a 100,000-rupee fine and prison time, everyone will be discouraged from probing further.

The new law does not conform to international benchmarks, Rahman said.

“We can define this amendment as nothing less than an incentive for corruption. That is why this clause has been identified as failing international standards. Why reverse this progress?”

“By reversing this, you are indirectly providing a protective cover for public officials to engage in corruption.

“Amid the perks and privileges granted to public officials, those cannot be traced; investigating them comes to a halt. Is there a hidden scheme beneath this to utilize those perks and privileges granted to public officials to target and hunt down opposition political leaders in this country? Because they can be weaponized. Because no one can investigate them! What they receive remains concealed.”

Dismantling the requirement that a public official must declare not only their own assets, but also the assets of individuals cohabiting in the same household facilitates corruption Rahman said.

“Typically, corrupt individuals register stolen wealth in the names of those closest to them. That is a classic tactic of corruption. It is being done even now, as you well know! When tracing the assets of certain individuals today, they are not registered under their own names, but under the names of third parties. You are removing that clause!”

“This is not what the people who voted for you expected. The people granted you a mandate for transparency, accountability, and the eradication of corruption. Yet, having secured that mandate, instead of strengthening the Act, diluting it and providing cover to the corrupt is deeply regrettable.”

Under the amended Act, officials appointed to state institutions where the government holds a 50 percent shareholding must submit their asset declarations. The threshold was previously 25 percent.

“What is the logic behind excluding entities holding between 25% and 50%? How can you guarantee that corruption will not occur through appointed officials in those entities? A multitude of serious doubts and suspicions have been created by your actions.”

Court rulings

The approval of the amendments to the Act follow a determination by the Supreme Court last month on petitions filed by Transparency International Sri Lanka (TISL).

Speaker Jagath Wickramaratne had announced that the court found Clause 17 unconstitutional without a two-thirds parliamentary majority and a national referendum.

The court also determined that repealing Section 80(1)(e) — which requires declarations from household cohabitants — was inconsistent with equal protection rights under Article 12(1) unless passed by a special majority.

Government defends practical fixes

Defending the bill during the parliamentary debate, Prime Minister Harini Amarasuriya rejected allegations that the government was weakening the anti-graft framework.

She claimed the amendments were introduced to resolve operational and human resource constraints, while introducing provisions to recover stolen public funds, which were missing in the original 2023 law.

“This is, in fact, an attempt to resolve the practical challenges, institutional challenges, and human resource issues encountered in implementing the anti-corruption process for the first time in Sri Lanka’s history, rather than diluting it,” Amarasuriya said. (Colombo/Oct09/2026)

Continue Reading

Sri Lanka sells extra Rs8bn Treasury bills after auction

ECONOMYNEXT – Sri Lanka has sold 8,000 million rupees of treasury bills offered on tap at average rates of 9.44 percent and 9.95 percent, the public debt management office said, bringing the total of bills sold in the week to 88 billion rupees.

Total market subscription was 16,025 million rupees.

The debt office sold a 6-month bill at 9.44 percent.

The debt office sold a 12-month bill at 9.95 percent.

Read more
Sri Lanka Treasury bill yields rise marginally, Rs80bn sold

On Wednesday (7) the debt office raised 80 billion rupees of 3, 6 and 12 month bills. (Colombo/Oct9/2026)

Continue Reading