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Yala resort deal: Court extends enjoining order against SLTDA till July 31
View(s):The Colombo District Court has extended till July 13 an enjoining order issued against the Sri Lanka Tourism Development Authority (SLTDA) preventing it from cancelling a lease agreement with a company that has accused the current SLTDA chairperson over a conflict of interest.
Colombo District Judge Amali Ranaweera extended the enjoining order when the case was taken up on June 30. The matter will now be taken up by way of written submissions on July 13.
Meanwhile, filing its objections over the enjoining order, the SLTDA accused the company, Lanka Reality Leisure (Pvt) Ltd., of carrying out a “malicious campaign” against its chairperson.
Lanka Reality Leisure (Pvt) Ltd., formerly known as Ascot Leisure (Pvt) Ltd., had entered into an agreement with the SLTDA to lease out a seven acre plot of land in the Palatupana area in Hambantota to build a tourist resort targeting visitors to Yala National Park.
In objections filed through its lawyers, the SLTDA stated that Lanka Reality Leisure (Pvt) Ltd. had “maliciously, fraudulently and wrongfully” misrepresented to court that the decision to terminate the lease agreement had been made due to a conflict of interest in the chairperson in that her husband has an interest in one of the hotels which adjoins the hotel project being developed by the plaintiff company.
The authority claims that of the five investors who had been allocated leaseholds in the Yala (Palatupana) Wildlife Tourism Zone, the plaintiff is the only lessee who has made no construction whatsoever, not applied for any extensions whatsoever nor been granted any extensions, and is in absolute default of the Obligations of the Lease Agreement.
Under the terms of the lease agreement, Lanka Reality Leisure (Pvt) Ltd. was under obligation to complete the construction and/or to commence commercial operations by April 18, 2018, the SLTDA has noted in its objection.
The SLTDA has further pointed out that its current chairperson was appointed on December 12, last year and had accepted her appointment on December 20. Thus, all decisions in any event pertaining to the cancellation and the subsequent decisions to grant the lease to another investor have been done prior to the appointment of the current chairperson, the authority notes in its objection.
“In the circumstances the allegations made against the chairperson of the defendant are completely mala fide, malicious and for collateral purposes,” The SLTDA claims. Romesh de Silva, P.C., instructed by Sanath Wijewardane appeared for the SLTDA while Ali Sabry, P.C., with Ruwantha Cooray and Naamiq Nafath appeared for Lanka Reality Leisure (Pvt) Ltd.