Hayleys to submit used mattress disposal strategy to BoI tomorrow
Hayleys Free Zone Ltd (HFZ), a subsidiary of Hayleys Advantis PLC, will meet the Board of Investment (BoI) tomorrow to present a proposal to get rid of the current stock of used mattresses stored at its Katunayake yard, company officials said.
“We were requested to explain by the BoI as to how we will re-export 109 container loads of used mattresses currently stored at the Hayleys Free Zone yard at Katunayake Export Processing Zone. We are preparing a report and will include multiple proposals on how we aim to do so. We will submit it on Monday (tomorrow),” a Hayleys HFZ official told the Business Times on Wednesday. This came back after three top HFZ officials at a media conference in Colombo on Monday firmly refuted allegations that they imported garbage to Sri Lanka. They addressed media saying the mattresses were not imported by them, but Ceylon Metal Processing Corporation (Pvt) Ltd (CMPC). The contract for processing and re-export was awarded to HFZ by freight forwarder, ETL Colombo Ltd.
HFZ, established under the Commercial Hub Regulation Act No.1 of 2013, operates as an offshore location to provide logistics services to global clients, mainly to offer storage and value added services for re-export, they said noting that they cater to more than 100 clients, of whom CMPC is one. Ruwan Waidyaratne, Managing Director, HFZ told journalists that initially 130 container loads of used mattresses were to be re-worked and re-exported (which is a global business) as items such as fabric, felt, sponge, and steel after processing as per the client’s order and 29 were already done.
“This shipment was consigned to Hayleys Free Zone by the freight forwarder ETL Colombo (Pvt) Ltd, as per the Hub Regulation where it states that any cargo arriving at the Free Zone premises must be consigned to the Free Zone operator.” He said that as the importer had faced financial difficulties, there was a delay in payment by the freight forwarder forcing postponement of re-working of mattresses in other containers. This is why the cargo was lying for nearly two years at the HFZ. Mr. Waidyaratne stressed that HFZ had no connection to the 102 containers with alleged medical waste.
On July 19, BoI issued a statement saying, “In January 2018, having observed that a significant amount of this cargo was stored within the free zone premises without being re-exported as envisaged, BoI has given written instructions to the company to strictly comply with commitments laid out in the BoI agreement and the applicable environmental regulations. Simultaneously the BOI took further steps to suspend all future import of used material and the company committed to clear all cargo by end February 2018. The company however, has failed to meet this commitment and has from time to time requested extensions to comply, citing technical and other constraints. Since the company has failed to re-export the goods as committed the BoI Board has decided to take stern action against the company with a view to concluding this matter expeditiously.”
The official added that HFZ was granted just one week to submit the report.