The chairman of Litro Gas Lanka Ltd, Mr. Shalila Moonesinghe, on Monday, sent a letter of demand to former minister Bandula Gunawardena demanding Rs. one billion as damages over several allegations he had made concerning the company.

Mr. Gunawardane had alleged that the present government had given permission to privatise the state owned Litro Gas Lanka Ltd by signing a Memorandum of Understanding (MoU) with Shell Gas Lanka Ltd.

Mr. Gunawardane had also said that the present government had signed a MoU with Shell Gas Lanka Ltd to purchase gas at US$105 per tonne, contrary to the laid down tender procedures.

Litro Gas Lanka Ltd denied the allegations, saying the management appointed by Finance Minister Ravi Karunanayake had called for international tenders for the procurement of gas over the next two years at a competitive price, and that the transaction was quite transparent. (Ajith Siriwardana)