An Echelon Media Company
Saturday March 2nd, 2024

Sri Lanka court orders BOI not to bar recyclers who refused irregular payments

ECONOMYNEXT – Sri Lanka’s Court of Appeal has issued an interim order preventing the Board of Investment from barring waste recyclers who refused to make irregular payments to an ‘Amunugama Foundation’ to continue to serve industrial clients.

The petitioning waste recyclers complained to court that the Private Secretary of State Minister Dilum Amunugama had demanded that irregular payments to be made to be able to continue to take waste away from their client companies, after starting a new ‘registration’ process.

The demand was made at a workshop called by the Ministry of Investment Promotion to inform of a “the new system for registration of the purchasers and/or handlers of scrap and/or waste discharged from the factories in the area of authority and/or licensed zones.”

The fee was to be made in cash or cash check.

The waste recyclers said they had the required licenses including from the Central Environmental Authority and in any case could not make payments to a foundation which amounted to a bribe.

The waste recyclers told court were also bound by their contracts with the industries including through Anti-Bribery Policy and Safety policies preventing them from paying bribes.

The new registration scheme to collect payments “arbitrarily and illegally forced on them” risked losing their customers who have a strict anti-bribery and anti-corruption policy.

The State Minister and Private Secretary have no business to demand private payments that don’t go into the BOI or Consolidated Fund, the recyclers said.

They said that others have paid to be allowed to operate. The Petitioners say they don’t want to make corrupt payments and court should not allow such an illegal scheme.

On October 12 a lorry belonging to one of the petitioners were not allowed to enter the Horana Export Processing Zone by BoI staff.

Justices Sampath Wijeratne and A. Marikkar issued an order to allow the waste recycler to enter the BOI zones and take away scrap until the next court date of December 04.

Viran Corea with Thilini Vidanagamage instructed by Chamali Ranathunga appeared for the Petitioners.

Kamran Aziz appeared for State Minister Dilum Amunugama’s Private Secretary in objection to any interim being granted by court. Sanjeewa Dassanayake appeared for the State Minister and Nayomi Kahawita, SSC appeared for the BOI.

Leave a Comment

Your email address will not be published. Required fields are marked *

Leave a Comment

Leave a Comment

Cancel reply

Your email address will not be published. Required fields are marked *

Sri Lanka eyes SOE law by May 2024 for better governance

ECONOMYNEXT – Sri Lanka is planning to pass a Public Commercial Business (PCB) Act improve governance of state-owned enterprise by May 2024 as part of an anti-corruption efforts following an International Monetary Fund assessment.

Sri Lanka’s state enterprises have been used by politicians to give ‘jobs of the boys’, appropriate vehicles for personal use, fill board of directors and key positions with henchmen and relatives, according to critics.

Meanwhile macro-economists working for the state also used them to give off-budget subsides or made energy utilities in particular borrow through supplier’s credits and state banks after forex shortages are triggered through inflationary rate cuts.

The government has taken billons of dollars of loans given to Ceylon Petroleum Corporation from state banks.

There have also been high profile procurement scandals connected to SOEs.

An SOE Reform Policy was approved by Sri Lanka’s cabinet of ministers in May 2023.

The Public Commercial Business (PCB) Act has now been drafted.

A holding company to own the SOEs will be incorporated and an Advisory Committee and Board of Directors will be appointed after the PCB law is approved, the statement said. (Colombo/Mar01/2024)

Continue Reading

Sri Lanka rupee closes at 308.80/90 to the US dollar

ECONOMYNEXT – Sri Lanka’s rupee closed at 308.80/90 to the US dollar Friday, from 309.50/70 on Thursday, dealers said.

Bond yields were broadly steady.

A bond maturing on 01.02.2026 closed at 10.65/75 percent up from 10.50/70 percent.

A bond maturing on 15.09.2027 closed at 11.90/12.05 percent from 11.90/12.10 percent.

A bond maturing on 01.07.2028 closed at 12.15/35 percent down from 12.20/25 percent.

A bond maturing on 15.07.2029 closed at 12.25/40 percent up from 12.30/45 percent.

A bond maturing on 15.05.2030 closed at 12.30/45 percent down from 12.35/50 percent.

A bond maturing on 01.07.2032 closed at 12.50/13.00 percent from 12.55/13.00 percent. (Colombo/Mar1/2024)

Continue Reading

Sri Lanka stocks close up 0.37-pct, Expo to de-list

ECONOMYNEXT – The Colombo Stock Exchange closed up 0.37 percent on Friday, and SG Holdings, the parent company of Expolanka Holdings Plc, said it was taking the company private.

Expolanka is the largest listed company on the Colombo Stock Exchange.

“Expolanka Holdings PLC has, at the Board Meeting held on 1st March 2024, considered a request from its principal shareholder and resolved to initiate the de-listing of the Company’s shares from the Official List of the Colombo Stock Exchange subject to obtaining necessary shareholder approval and regulatory approvals,” the company said in a stock exchange filing.

As per arrangements with SG Holdings Global Pte Ltd, the Company’s majority shareholder, it will purchase its shares from shareholders who may wish to divest their shareholding in the Company at a purchase price of Rs 185.00 per share. The share closed up at 150.50.

The broader All Share Index closed up 0.37 percent, or 39.47 points, at 10,691; while the S&P SL20 Index closed down 0.64 percent, or 19.59 points, at 3,037.

Turnover stayed above the 1 billion mark for the sixth consecutive day, registering 1.4 billion.

Crossings in Melstarcorp Plc (135mn) up at 89.50, Hatton National Bank Plc (64mn) up at 158.00, Hemas Holdings Plc (53mn) up at 75.00 and Central Finance Company Plc (26mn) up at 103.50, added significantly to the day’s turnover.

“The upward trend is continuing, with more retail buying also coming in, the number of trades was more than 10,000 today,” a market participant said. “Investors are looking for undervalued stocks and buying in quantities.” (Colombo/Mar1/2024).

Continue Reading