• Lyca Group obtains stay order from Court of Appeal, delaying divestiture
• Action also instituted against SLT divestment, but no stay order yet
• Issues arise in divestiture of Canwill Holdings, delaying next steps
• SLIC, Litro Gas Lanka, and Litro Gas Terminal Lanka divestiture on from May

The divestiture process of Lanka Hospitals Corporation PLC has been temporarily halted again following the issuance of a stay order by the Court of Appeal, according to the State-Owned Enterprise Restructuring Unit (SOERU). 

Speaking to The Sunday Morning Business, SOERU Head Suresh Shah revealed that the Lyca Group had once again obtained a stay order from the Court of Appeal, temporarily preventing the Government from proceeding with the divestiture process of Lanka Hospitals. 

This follows the institution of a new application subsequent to the withdrawal of its previous application filed in February. 

Shah revealed that Lyca Group had similarly instituted a new action against the divestment of Sri Lanka Telecom (SLT) as well but noted that the Court of Appeal had thus far not issued a stay order halting the said divestment. 

Accordingly, they were proceeding with the divestiture process for SLT, he noted. 

“Due to the stay order issued by the court in the matter of Lanka Hospitals, there is nothing we can do at the moment,” he stated.

Commenting on the status of the other SOEs that are being divested by the Government, Shah revealed that certain issues had arisen in relation to the company with regard to the divestiture of Canwill Holdings Ltd. (Grand Hyatt, Colombo), due to certain persons making claims for portions of the Grand Hyatt land.  

Therefore, he stated that such issues would have to be resolved first prior to proceeding with the next steps in the divestiture process.

Earlier this year, it was revealed that eight Requests for Qualifications (RFQs) had been received from potential investors for the acquisition of shares in Lanka Hospitals.

Commenting on the fate of Sri Lanka Insurance Corporation Ltd. (SLIC), Litro Gas Lanka Ltd., and Litro Gas Terminal Lanka Ltd., Shah revealed that the divestiture processes for these companies would commence by mid-May.

In February, Lycamobile S.A.R.L. and Pettigo Comércio Internacional filed a Writ Application against the divestiture process of SLT, while Lyca Leasing Holding Ltd. filed a Writ Application against the divestiture process of Lanka Hospitals.

Accordingly, on 27 February, the Court of Appeal bench comprising Justice D.N. Samarakoon sitting by himself issued an interim injunction preventing any future measures being taken concerning the divestiture of the Sri Lankan Government’s shares in SLT and Lanka Hospitals.

These interim injunctions issued by the Court of Appeal were to be effective until the next date of the matter, which was fixed for 12 March.

However, on this date, the applications were withdrawn by the petitioners while reserving the right to file a fresh application.