SLIC ownership reverted

The Supreme Court delivered the verdict on the Fundamental Rights application challenging the 2003 privatisation of the Sri Lanka Insurance Corporation (SLIC) yesterday.

Finding the privatisation to be faulty, the Bench ordered that SLIC revert to the ownership of the Government of Sri Lanka.

The money paid to purchase SLIC in 2003 is to be returned to the investor by way of Treasury Bonds.

Distilleries shares crashed while the verdict was being delivered and hit a day low of Rs 70.50 but recovered to end the day at Rs 76.75.

The share lost Rs 17.25 for the day. Lanka Milk Foods which has 38 million shares of Distilleries saw its share price close down Rs 7.25 to Rs 41.75 after hitting a day low of Rs 40.25. Distilleries through Sri Lanka Insurance controlled substantial stakes in Aitken Spence and Co, Commercial Bank, DFCC Bank, Asiri and Asiri Surgical Hospitals, Apollo Hospitals and E-Channelling. Source: First Guardian Equities