Sri Lanka extends term of expropriation compensation committee
ECONOMYNEXT – Sri Lankas has extended the term of a committee that is expected to compensation to owners of private companies that were expropriated by the state by one year Minister Ramesh Pathirana said.
The cabinet of ministers had extended the term as compensation has not yet been paid for some assets including Sevanagala and Pelwatte Sugar firms that were expropriated, he said.
“Because the compensation has not been completed it has been extended,” Minister Pathirana said. “Anyone who has not yet got compensation can appeal.”
Pelwatte Sugar was a listed company. Shares of another listed company, Hotel Developers were also expropriated.
Sri Lanka expropriated a number of firms including foreign owned ones in 2011, using a ad hominem law where enterprises named.
A legislative challenge was also outlawed in a serious violation of the separation of powers, legal analysts said raisin concerns over rule of law as well as private property ownership.
Expropriation of private property is a factor that contributes to an uncertain and high risk business environment that economists call ‘regime uncertainty’ which discourages investments, jobs and economic growth.