President Maithripala Sirisena yesterday received Cabinet approval to appoint a committee to study the liabilities and responsibilities on public finance of Rakna Arakshaka Lanka Limited (RALL) and to make recommendations on attaching employees of RALL to LRDC Services Private Ltd of the Land Reclamation and Development Corporation to ensure their job security.
Despite Cabinet having granted approval to liquidate RALL and to assign its maritime security to the Sri Lanka Navy and its land base security to Civil Security Department on December 13, 2016, the Attorney General had pointed out that it was not prudent to liquidate the company at this time given the current process of litigation against it.
RALL which was run as a part of Avant Guard Maritime Services during the tenure of the previous regime has come to face many financial problems over the years.
According to the government, Rs.839 million should be recovered to the RALL from Avant Guard Maritime Services while Rs.782 million should be recovered to the Navy from Avant Guard.
The Cabinet
Paper submitted by the President also noted that a decision soon would have to be taken on whether or not a late charge or an interest needs to be charged for the delay taken place to settle the payments.