Financial Times

SLPA asks bunker licence holders to share facility
 
By Duruthu Edirimuni Chandrasekera

The Sri Lanka Ports Authority (SLPA) has asked the seven bunker licence holders to, together device a procedure to use the common user facility at the Colombo Port, according to an industry source.
The Supreme Court judgement against LMSL empowered SLPA to reclaim the common user facility and to negotiate terms with others to use this facility.

"During the last two weeks there have been ongoing discussions with the licence holders to use the common user facility," Reza Mohammed, CEO Lanka Maritime Services Ltd, one of the licencees, told The Sunday Times FT. The common user facility is the pipeline system connecting the Colombo Port to the Bloemendhal Bunker depot and the 12 tanks at Lanka Marine Services Ltd (LMSL). Meanwhile businessman Nahil Wijesuriya is gearing to file action against LMSL with regard to the common user facility at the port. "I am consulting lawyers to file for damages I suffered for not being able to use the common user facility," Mr. Wijesuriya, who had shipping company earlier, told The Sunday Times FT. "I filed a case regarding this issue some years ago, but withdrew it because it kept getting postponed. I had a 35,000 tonne vessel offshore and when I had the opportunity to sell it I did," he added.

Meanwhile in parliament on Friday, Minister Nimal Siripala de Silva responding to a question raised by JVP MP Anura Kumara Dissanayake on the LMSL issue said that discussions are underway to hand over the bunkering operations and the oil tank facility to the licence holders under the control of the Sri Lanka Ports Authority.

MP Anura Kumara Dissanayake said that the JVP is totally against this move and noted that the Ceylon Petroleum Corporation should be given the monopoly to carry out bunkering operations for the benefit of the country. He added that the government is again trying to privatize the LMSL even after the land mark Supreme Court judgement.

LMSL, in a press release on Friday. said the impact on the company via the tax liability and other costs as a result of the judgement is estimated at Rs 704 million.

“…in our view, the impact on the consolidated income statement and / or reserves of the group as a result of the additional tax liability, additional customs duty, asset impairment (if LMS does not continue in business) and other costs associated with the vacating of the premises is estimated at Rs. 704 million (consolidated at 99.44 per cent),” the company said in a statement.

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