Petitions against divestiture of SLT, Lanka Hospitals withdrawn

Two writ applications filed in the Court of Appeal by four parties including Lyca Mobile  challenging the rejection of their pre-qualification bidding applications for the divestiture of State-Owned Enterprises (SOEs) were withdrawn by them yesterday, reserving the right to file fresh applications in the future.

These petitions were filed by Lyca Mobile SARL, Lyca Leasing Holding Ltd, Pettigo Comercio International LDA and Haims International Ltd relating to the divestiture process of the Sri Lankan Government-owned 50.23 percent shares in Sri Lanka Telecom PLC and 51.34 percent shares in Lanka Hospitals Corporation PLC.

A Special Negotiation Committee and a Project Committee approved by the Cabinet on the divestiture purpose had decided the petitioners as “not pre-qualified bidders” and rejected their pre-qualification bidding applications without citing proper reasons on a previous occasion.

Aggrieved by the rejection, the parties had sought the Court of Appeal’s involvement to order a re-evaluation of their bids by the Cabinet approved committees.

When these writ petitions were considered before the Court on February 27, the petitioners had obtained a stay order of ex parte suspending the continuation of the divestiture process, which was in effect until today (12).

Again on March 6, the case was taken up before Justice D.N. Samarakoon and the counsels appearing for respondents raised preliminary objections to the petitions that the petitioners naming the incumbent President of the country in his personal capacity as a respondent is in violation of the Article 35 of the Constitution. They also pointed out that the entire petition was defective and futile.

When the hearing of the petitions resumed yesterday, President’s Counsel Kuvera de Soyza appearing for the petitioners informed the Court that considering all these facts, his clients are withdrawing the application subject to the liberty to file fresh applications.

President’s Counsel Faizer Musthapa appearing for the second respondent of the petitions State Minister of Finance Shehan Semasinghe then informed that the petitioners may withdraw the petitions ‘subject to objection’. Accordingly, the case was dismissed by the Court.

Ronald Perera, PC with Attorney-at-Law Chandimal Mendis appeared for President Ranil Wickremesinghe as Minister of Finance, Faiszer Musthapha, PC with Attorneys-at-Law Shaheeda Barrie and Mehran Careem appeared for the State minister of Finance while Kuvera de Soyza, PC with Attorney-at-Law Dassanayaka appeared for the petitioners.

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