Mihin Lanka breached BOI conditions - official | Daily News

Mihin Lanka breached BOI conditions - official

The Presidential Commission investigating alleged fraud, corruption and misuse of state funds and property in SriLankan Airlines, Sri Lankan Catering Services and Mihin Lanka yesterday ordered the CID to investigate whether any outside interference prevented the BOI from taking action against Mihin Lanka.

It was found that Mihin Lanka was acting in breach of all BOI conditions. The Commission asked the CID to submit a report to the Commission on this matter urgently.

The Commission through Deputy Solicitor General Shanaka Wijesinghe directed the CID to begin the investigation by visiting the BOI and meeting its monitoring officer. The CID responding to this order began its investigations by noon yesterday.

BOI Director (Investment) Gamini Jayatilleke giving evidence led by Deputy Solicitor General Shanaka Wijesinghe said Mihin Lanka had breached BOI conditions and failed to respond to reminders made by the BOI.

He said he was unaware why the BOI failed to take any action on the matter. Mihin Lanka Chief Executive Kapila Chandrasena had sent a letter dated February 26, 2009 to the BOI making several requests. They were to reduce the investment of 100 million US dollars to 50 million US dollars. Reduce Rs. 616 billion investment to Rs. 3,616 million and to reduce the foreign exchange income from 70 percent to 40 percent.

Although the BOI had asked him to show cause for his request and made several reminders later, there had been no response from Mihin Lanka.

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