JKH Press Release 22 July 2008
July 22, 2008 at 8:51 am · Press Releases
22nd July 2008
Announcement
Judgment was delivered by the Supreme Court of the Democratic Socialist Republic of Sri Lanka on 21 July 2008, in a Fundamental Rights application regarding the privatization of Lanka Marine Services (Private) Limited (LMS), a wholly owned subsidiary of John Keells Holdings PLC (JKH). The Supreme Court has in its judgment held, inter alia, as follows:
a) The land Grant to LMS dated 19 January 2005 under the hand of the President of the Republic of Sri Lanka transferring ownership of the land on which LMS carries on its business is null and void;
b) The Common User Facilities Agreement between the Government of Sri Lanka, the Sri Lanka Ports Authority, Ceylon Petroleum Corporation and LMS dated 20th August 2002 is null and void;
c) All agreements entered into between the Board of Investment of Sri Lanka, a statutory corporation, and LMS are null and void.
In view of the foregoing the Court did not think it necessary to make an order regarding sale of shares of LMS by Ceylon Petroleum Corporation to JKH which therefore remains intact and effective.
Accordingly the Court directed
i) LMS to vacate the aforesaid land and restore possession of the land to the Sri Lanka Ports Authority, a statutory corporation, within 30 days of the judgement.
ii) That the Sri Lanka Ports Authority may enter into fresh agreement/s for the use of facilities within the Port on equal terms with all parties licensed to supply bunkers.
iii) the Commissioner General of Inland Revenue to recover all taxes as if there was no agreement between LMS and the Board of Investment of Sri Lanka.
In the aforesaid, JKH and LMS are reviewing the options available to ensure the continuity of business at LMS and also assess the financial impact of this judgement on the two entities.
Further notification will follow.
Investor Relations Team
John Keells Holdings PLC
130, Glennie Street
Colombo 02
Sri Lanka
Tel: 94-11-2306739
Fax: 94-11-2306160
E-mail: investor.relations@keells.com
Website: www.keells.com