Friday, 29 March 2024
Cargills to acquire Nikaweratiya farmland amidst legal barriers

Cargills to acquire Nikaweratiya farmland amidst legal barriers

Amidst trade union protests and legal issues, Cargills (Ceylon) PLC, Sri Lanka’s leading modern retail trade and Fast Moving Consumer Goods industry is to acquire a section of the National Livestock Development Board owned Nikaweratiya Farmland consisting of 1650 acres as part of its accelerated expansion and diversification drive.

The Government has given a green light to Cargills to go ahead with the project following a settlement with trade unions attached to the Farm, Rural Economic Ministry, sources said.

A Rural Economic Ministry official noted that in section 1, Cargills has been given 930 acres out of 1650 acres for surveying for the acquisition although the company has requested 1000 acres. However the company has surveyed section 2 as well which is in the extent of 300 acres without the approval, an official of the ministry said.

All though the NLDB is not against the project, it has to suspend it due to the company’s irregular action, he added.

A directive has been issued to the company to seek approval from the ministry to acquire the section 2 of the land before carrying out the survey of the land.

However the Ministry has informed the company that it cannot enter into a Public Private Partnership (PPP) as the Attorney General has advised against it.

A top level directive was issued to the ministry and the company to discuss the matter with trade unions and proceed with forming a new company as provided for in the 1987 Act.

Last modified on Wednesday, 05 October 2016 08:02