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Wednesday, 22 May 2019 00:00 - - {{hitsCtrl.values.hits}}
By Ashwin Hemmathagama – Our Lobby Correspondent
The Government moved a new law to repeal the Revival of Underperforming Enterprises of Underutilised Assets Act No.43 of 2011 yesterday in Parliament, seeking House approval.
Even though the Act will be, repealed most properties acquired during the administration of Opposition leader Mahinda Rajapaksa will not be returned to their owners, but will continue to be with the Government.
The Revival of Underperforming Enterprises or Underutilised Assets Act was enacted in 2011 to vest the “underperforming enterprises or underutilised assets” with the Government, and make provisions for “their proper management, administration or revival and for the payment of relevant compensation.”
But the United National Party (UNP) at the time argued it created uncertainty in the minds of investors and had an adverse effect on the country’s ease of doing business. In April, Cabinet approved repealing the Act.
According to the Revival of Underperforming Enterprises of Underutilised Assets Repeal Bill, the Hotel Developers (Lanka) PLC, the company that owns Colombo Hilton, and the assets of Charmers Granary Pettah, Colombo Commercial Company properties in Badulla, and the properties of Lanka Tractors Ltd. in Pettah and Narahenpita will be conferred to the Secretary of the Treasury, along with many other properties mentioned in the Schedule 1 and 2 of the Act.
Acquired properties coming under the purview of this Bill includes Sinotex (Lanka) Ltd., Jaqalanka Ltd., Plymouth Industries Ltd., Cosmos Macky Industries Ltd., Kabool Lace Ltd., former Cashew Corporation land, Intertrade Lanka Ltd., Suchir NEB Projects Ltd., Ceylinco Leisure Properties Ltd., Seetha’s Fashion Ltd., D.C. Apparel Ltd., Needle Crafts Ltd., HY Fashion Garments Ltd., Collins Garment Ltd., Ruhunu Putha Apparels Ltd., and Sanjaya Garments Ltd.
The remaining companies on the schedules includes Macfa Apparel Ltd., Yobeedha Associates Ltd., Dynamic Clothing Ltd., 609 Polymers Exports Ltd., Cosco Polymer Lanka Ltd., Great Wall Thread Manufacturing Ltd., Adamjee Extractions Ltd., Data Food Ltd., Tendon Lanka Ltd., Rican Lanka Ltd., Composite Tower Solutions Ltd., Health Food Products Ltd., Sri Chirag Ltd., Royale Exports Ltd., and Continental Vanaspathi Ltd.
