News

Expropriated ventures: Owners’ second chance

By Bandula Sirimanna

Former owners of business ventures taken over under the Revival of Underperforming Enterprises and Underutilized Assets law are to be offered a second chance to run their ventures, a Finance Ministry official said yesterday.

This will be done only if they provide a “viable business plan” to develop them in conjunction with the Competent Authorities already appointed. The Government will, however, retain the ownership of these enterprises. They will remain vested with the state.

The new law makes provision for existing operators or owners to reach an agreement with the CAs to continue to manage the enterprises. As an initial step, a Finance Ministry official said, the CAs will assess the assets including machinery, equipment and other facilities before formulating their next course of action.

He said the government had not taken action to seal these enterprises because the employees were reporting to work. Legal action would be taken against the owners if they had removed any movable property or withdrawn any material including machinery belonging to the expropriated enterprises; he said adding that he believed no such thing happened because of constant vigilance of employees.

Daya Group of Companies Chairman Daya Gamage who owned the Sevenagala Sugar Industries Ltd. said his company was ready to move out of Sevenagala but the government should pay proper compensation. He said he had no intention to continue operations and it was up to the CA to take a decision.

Mr. Gamage said he was not informed about the procedure that would be followed by the government.
Ariyaseela Wikramanayake, Managing Director Pelwatte Sugar Industries PLC, said the company was continuing its operations as it was not informed about the expropriation procedure. He said there was no sugar crushing at the factory now because of the off season but the replanting of sugar cane was underway.

Mr. Wikramanayake said his company was prepared to present a business plan if the government requested it. Anyway the company had doubled the sugar production capacity from 2700 MT to 4500 MT of sugar cane at present, he claimed.

The government has appointed competent authorities, a ministerial committee and a 3-member compensation committee to oversee 37 expropriated assets and enterprises and assets. Lawyer Kalinga Indatissa has been appointed competent authority for Lanka Tractors (properties in Pettah and Narahenpita), Chalmers Granaries (in Pettah), Ceylinco Leisure Properties Ltd (Kollupitiya) and Intertrade Lanka (Pvt) Ltd (in Fort).

Lawyer Senaka Walgampaya has been appointed as CA for Hotel Developers Lanka, the management company of Colombo Hilton. The Hambantota District Secretary has been appointed as the competent authority for Pelwatte Sugar, the Moneragala District Secretary as CA for Sevenagala Sugar, the Badulla District Secretary for property of Colombo Commercial Company in Badulla.

Tuly Cooray has been appointed for other expropriated assets, which are Board of Investment approved defunct factories.

A ministerial committee chaired by Environment Minister Anura Priyadarshana Yapa has also been appointed. The other members are Ministers Dilan Perera, Reginald Cooray, Lakshman Seneviratne, and Deputy Finance Minister Geethanjana Gunawardena.

Top to the page  |  E-mail  |  views[1]
SocialTwist Tell-a-Friend
 
Other News Articles
Mechanism to probe war incidents soon
Mafia disrupts Colombo tea auctions
Colombo-Tuticorin ferry service suspended
Expropriated ventures: Owners’ second chance
Gale havoc: State agencies did not give warning
Dematagoda businessman says trader rivalry behind his abduction
Mutur teacher’s killing: 2 arrested
Ratwatte’s funeral at Bogambara
Acquitted businessman files motion for release of business premises
Bird-blended tea sweepings sold here and abroad
Enjoining order lifted to permit resolution of conflict
SC reserves judgment on Thera’s FR petition against police
Never again says miffed Cabraal
Sexually abused students now being bullied by a teacher, says NCPA
I did my job, but this is the first time I have received death threats: Judge Deepali
No investigation on furore inside High Court: Police spokesman
Banana farm on national park land dismantled: A win for conservationists
Athulathmudali’s books donated to BCIS
UN watchdog concerned at the absence of means to deter HR abuses in Lanka
Dead and disappeared, destroyed and displaced in storm’s aftermath
Climate change and security: What is the future that awaits us?
Budget: Bloom for some, gloom for others
Stranded Lankan crew’s families corner ship’s agent
ADB Vice President to attend Southern Expressway opening today
‘Female’ tusker report to be verified before news can be trumpeted
Pilgrims play dangerous game in tempting Sithulpawwa Tusker
Master forger of Rs 1,000 notes nabbed
Waste not development
Fascinatingly forthright, daringly defiant
Govt-TNA talks: Where are the Muslim politicians?

 

 
Reproduction of articles permitted when used without any alterations to contents and a link to the source page.
© Copyright 1996 - 2011 | Wijeya Newspapers Ltd.Colombo. Sri Lanka. All Rights Reserved | Site best viewed in IE ver 8.0 @ 1024 x 768 resolution