The two fundamental rights applications filed by several office bearers of trade unions and employees of Lanka Sugar Company Ltd. were withdrawn last week after the Government informed court that the Sevanagala Sugar Factory and its lands would not be returned to former Minister MP Daya Gamage.

Appearing on behalf of the Secretary to the Ministry of Finance, Economic Stabilisation, and National Policies, the Attorney General’s Department on 6 December, in the fundamental rights matters bearing Nos. 113/2023 and 115/2023, submitted to the three-judge bench of the Supreme Court that they would act in accordance with a previous motion filed in court, wherein they had assured that the Sevanagala Sugar Factory and its lands would not be returned to Sevanagala Sugar Industries Ltd. owned by Daya Gamage. 

The bench comprised Justices P. Padman Surasena, E.A.G.R. Amarasekara, and K. Priyantha Fernando.

Based on the aforesaid assurances, the petitioners in the fundamental rights matters bearing Nos. 113/2023 and 115/2023 submitted to the Supreme Court that they would be withdrawing their applications.

It was further submitted to court on behalf of the Secretary to the Ministry of Finance, Economic Stabilisation, and National Policies that whilst the Sevanagala Sugar Factory and its lands would not be returned to Sevanagala Sugar Industries, steps would be taken to adequately compensate for the expropriation of the Sevanagala Sugar Factory and its lands.

Towards that end, a new Compensation Tribunal has already been appointed under Section 5(1) of the Revival of Underperforming Enterprises or Underutilised Assets Act No.43 of 2011 to determine an adequate quantum of compensation.

In 2002, the Public Enterprises Reform Commission called for proposals for the sale of 90% of the shares of Sevanagala Sugar Industries. Thereafter, the bid made by Daya Apparel Export Ltd. – part of the Daya Group of Companies – amounting to Rs. 550 million was accepted. 

However, on 9 November 2011, the Government passed into law the Revival of Underperforming Enterprises or Underutilised Assets Act No.43 of 2011, wherein the fixed assets of Sevanagala Sugar Industries were deemed as underutilised assets and therefore expropriated in terms of the provisions of the act.

In March 2023, the office bearers of several trade unions and employees of Lanka Sugar Company filed the two fundamental rights applications bearing Nos. 113/2023 and 115/2023, wherein they alleged that there was a conspiracy to return the Sevanagala Sugar Factory and its lands to Daya Gamage.