Compensation

Sept 16, 2012 (LBO) – Shareholders of two listed firms that were expropriated by the state last year can lodge claims for compensation from a three member tribunal, a media report said. Sri Lanka’s The Sunday Island newspaper quoting a public notice said the panel wahzas made up of the Government Valuer, former chief valuer P W Senaratne and a third member, Sunil Fernando.

“Such compensation shall be payable to reflect the value of the shares held by each shareholder in affected enterprises or to reflect the value of an under-utilized asset based on its ownership by one or more of the owners,” the report said.

Two listed companies, Hotel Developers and Pelwatte Sugar were among enterprises and assets named in the law controversial law, which was passed by a legislature in which the ruling coalition has a two thirds majority.

Violating property rights of citizens by expropriation was a concept that became widespread in Eastern Europe.

Analysts point out that in the feudal era, all property was owned by the king.

But in post-feudal Eastern Europe, newly established property rights of people were re-taken by the ‘sovereign’ state, which had assumed the po