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Tue 19 Aug 2008, 10:06 GMT

LMS granted extension to vacate land


Supreme Court gives bunker supplier until September to vacate premises.

Sri Lanka's supreme court has given bunker supplier Lanka Marine Services (LMS) until September 10th to vacate land the land it currently uses to store product for its bunkering operations at the port of Colombo.

The court had ordered LMS to vacate the premises within one month of its judgement, which was Wednesday August 20th, and hand it back to the Sri Lanka Ports Authority (SLPA).

However, LMS made an appeal for a two-month extension pointing out that it had approximately 755,000 litres of lubricants and Rs. 1.43 billion worth of bunker fuel belonging to Mobil, BP, Castrol, Chevron Texaco, Total Fina Elf, Feoso and Aegean and was therefore unable to vacate the premises as ordered by the Superme Court on July 21st 2008.

LMS owner John Keells Holdings Ltd. is reported to have said that it had faced difficulties in removing fuel at the storage facility as workers were refusing to do their job.

The future of Lanka Marine Services has been in doubt since the Supreme Court decided last month there had been serious irregularities in the manner in which LMS had been privatized by John Keells Holdings Ltd.

The court ruled that the sale of land at Bloemendhal Road, Colombo without a valutation and Cabinet approval was unlawful. It then proceeded to cancel its tax holiday agreement with LMS, ordering John Keells Holdings to pay back taxes and give up the land it used for refuelling ships.

Further extension would be considered after hearing the SLPA, the court ruling said.

The motion filed by LMS is to be taken up again on September 8th.

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