Financial Times

LMS sues SLPA for Rs 20 mln a month
Lanka Marine Services (LMS), which till recently held an effective monopoly on supply of bunkers in Colombo Port, is suing the Sri Lanka Ports Authority for Rs 20 million a month for alleged losses suffered because open bunkering has been allowed inside the harbour.

The company has filed a civil action in the High Court of the Western Province seeking an interim injunction preventing other suppliers from supplying bunkering with using the ‘Common User Facility’ (CUF) consisting of storage and distribution infrastructure.

The SLPA allowed open bunkering by other firms in Colombo port after LMS, a subsidiary of John Keells Holdings, lost an Appeal Court case. This ended the effective monopoly held by LMS.

Mohamed Reza, director of rival bunker supplier Lanka Bunkering Services, said they will contest the new LMS action as it seeks to prevent them supplying bunkers in Colombo port.

The law suits and resulting uncertainty were preventing them from making further investments in developing the bunkering market in Colombo, he said.

Back to Business