This despite voices being raised against Avant Garde by ministers Rajitha Senaratne, Champika Ranawaka and Arjuna Ranatunga, and despite the ongoing investigations into the Avant Garde-owned floating armoury seized at Galle.

The agreement has given permission to Avant Garde to run its future operations centre project, fishing boat project, arsenal project in Galle, air and sea transportation of weapons project, unarmed marine security project and Rangala weapons project.

Permission has also been given for the Malacca Straits future operations centre, floating platforms project and the shooting range project for foreign marshals.

(A copy of the agreement is given below)

Illegal weapons belong to Navy?

Commenting on claims by ministers Senaratne, Ranawaka and Ranatunga that the Navy has taken custody of 3,500 illegal weapons from Avant Garde, a spokesman for Rakna Security Lanka questioned as to whether they become legal after they come under the Navy.

He maintained the weapons were legal, or else a gazette should have been issued once being taken over by the Navy to declare that they are legal.

Reports say the floating armoury at Galle had 40 Navy officers who were responsible for these weapons.

A spokesman for Avant Garde said they only rented out a ship.

The defence ministry has informed the company to hand over the weapons to the Navy and has not told the company to halt its operations, he said.

However, company chairman Nissanka Senadhipathi signed letters suspending the services of its 3,400 employees, said the spokesman.

He declined to give further information, saying he could not make statements that would inconvenience the president or the prime minister.