Shell quits Sri Lanka gas business amid state price control
Sri Lanka’s government is buying back Royal Dutch Shell's stake in the part privatized gas company, Shell Gas Lanka. Shell’s decision to sell follows long running quarrels with the Government over the price at which the company could sell gas in the country. The $63 million sale returns the LP gas business in Sri Lanka to 100% state ownership.
President Mahinda Rajapakse’s populist government had been at loggerheads with the oil and gas giant over the price at which gas is sold: the government has been insisting gas be sold at less than international market prices.