Financial Times - Merbok issue: injunction against BOI extended

Merbok issue: injunction against BOI extended

Contrary to the hopes of the BOI officials, the Colombo District Court extended an injunction – for the second time – preventing the BOI for another 14 days from stopping services to MDF manufacturer Merbok Lanka Ltd.

The case came up on Thursday where the BOI was hoping to overturn the injunction.

The court ruled that even thought the BOI had submitted a large amount of facts there was still ample facts to decide that the services to the computer should be continued by the BOI.

The case is due for hearing again on September 14.

The Sunday Times FT reported on the “extraordinary” subsidies given to the company which the BOI claims to be ‘ultra vires’ now saying that the BOI had no authority to give such subsidies to any company.

The company consumes massive amounts of rubber and other soft wood for its production leaving local furniture and wood related manufacturers empty handed which has sent many small scale industrialists out of business.

(CD)

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