COLOMBO (EconomyNext) – A second factory in Dipped Products Plc, a unit of Sri Lanka’s Hayleys group is embroiled in a court battle over pollution allegations, it has been revealed.
Dipped Products Plc, in a note to accounts on its 2014 annual report said a court case was filed against Hanwella Rubber Products Ltd by police, but the order had been appealed.
"In this regard, the Avissawella High Court stayed the Magistrates Order on Hanwella Rubber Products Ltd, based on the Appeal and Revision Application made by the Company, enabling its factory to continue operations," the note said.
"The Board of Directors is confident that there will not be an adverse outcome in this regard."
There was no disclosure in the annual report on the details of the order which is now under appeal. It is also not clear whether the firm had made a disclosure to shareholders when the court order was originally issued or on the appeal.
A court order on May 30, 2015 had directed the Hanwella Rubber was to stop operations within 14 days, according to other reports.
Dipped Products was earlier forced to shift a factory from Rathupaswela, after residents blamed it for making the water acidic, though the firm had insisted that it was not to blame.
In what was described a ‘joint letter by the Chairman and Managing Director’ the Dipped Products annual report said their production facility at Hanwella commissioned a ‘Reverse Osmosis Plant enabling the re-use of wastewater."
"Similar technologically advanced systems are in the process of implementation at all our manufacturing locations demonstrating our strong commitment to sustainability principles and carrying out our activities in a manner that the well-being of our people and environment is guaranteed."