Sevanagala Sugar Industries of Daya Group of Companies has sent a Letter of Demand to the Board of Investment of Sri Lanka, demanding damages of Rs. 14 billion due to the state’s takeover of Sevanagala Sugar factory.

On behalf of Sevanagala Sugar Industries, Paul Ratnayeke Associates delivered the letter dated March 16, 2012, to the BOI by registered post.

The LoD says that in the event of the failure of the BOI to pay the sum on or before March 25, the lawyers have been instructed to take all steps available in the law to vindicate the client’s rights.

It notes that Sevanagala Sugar factory was acquired due to the fact that the chairman and the principle shareholder of the factory is a prominent member of the UNP.
The LoD goes onto allege that the ministers, acting wrongfully, unlawfully and mala fide, referred the expropriation bill to the supreme court as an urgent matter, although there was no such urgency whatsoever.

“By such reference our client and others were prevented from challenging the constitutionality of the bill which the constitution gives them the right to do. Subsequent legal steps could not be successful in view of the resultant SC determination,” it says.