Dec 31, 2010 (LBO) - The government has paid Distilleries Company of Sri Lanka 5.7 billion rupees spent by the firm to buy control of a state insurance firm in a privatisation deal reversed by a court order citing irregularities.
Sri Lanka's Supreme Court had ordered the government to repay the money originally paid by the liquor group to gain control of the state-owned Sri Lanka Insurance Corporation (SLIC) when it was privatised in 2003.
But the Supreme Court reversed the sale in June 2009, citing irregularities in the 6.0 billion rupee privatisation deal.
"The government returned the 5.7 billion rupees that was paid by DCSL subsidiary Milford Holdings to buy 510 million shares of SLIC," DCSL said in a stock exchange filing, Friday.
Distilleries Company is a unit of the unlisted Stassens group controlled by tycoon Harry Jayawardena who also has large stakes in the listed Hatton National Bank, Commercial Bank and National Development Bank.
In the June 2009 ruling, court has said Milford Holdings, a special purpose company incorporated by the Distilleries group to purchase SLIC, could keep the profits earned during the time they ran the firm.
source - www.lbo.lk
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