The Government has granted approval to Rakna Arakshaka Lanka to re-commence its Maritime Security operations with Avant-Garde Maritime Services as a joint venture, subject to conditions.
Co-Cabinet Spokesperson Minister Keheliya Rambukwella said the approval has been granted based on recommendations from the Attorney General (AG).
The move comes after a cabinet memorandum was tabled in July proposing to hand over the Maritime Security service operations to Avant-Garde and Rakna Arakshaka Lanka, in order to revive the project as a joint venture.
Reviewing the memorandum, the Attorney General had informed the Cabinet that it was not illegal for the said two companies to jointly operate a floating armoury to provide Maritime Security services for commercial vessels.
The AG had further noted that in November 2015 the operations of maintaining a floating armoury as per the joint agreement were forcibly taken over and the commercial project was vested with the Sri Lanka Navy, adding that the latter is not authorized to engage in any commercial activity.
It was also informed that the Sri Lanka Navy has agreed to hand over the operation to a suitable party.
Stating that the Government must be held responsible for forcibly taking over the floating armoury and the project, the AG said Rakna Arakshaka Lanka will have to face legal action for breaching the agreement and will have to pay compensation to the tune of USD 20 Million to Avant-Garde for the breach of the agreement following the take over of the operation.
As per the approval granted by the Cabinet to re-commence the operation subject to conditions, all overseas weapons must be stored, protected, issued, transferred to sea and land, and the regulation must take place under the direct supervision of the Sri Lanka Navy and if required, Sri Lanka Police protection can also be obtained. (NewsWire)