Die or Dare

A 10-year State guarantee to buy its entire requirement of school, police and hospital uniform cloth is on offer to any investor daring to revive Kabool Lanka.
Freedom Alliance Labour Minister Atauda Seniviratner says the government will also pledge Treasury approval to phase out the payment of some Rs. 160 million in outstanding statutory payments including monies owed to the employee provident and trust funds. rn

rnThe Chinese, Korean and Malaysian authorities have been approached by the Labour Minister.rn

rnBankers say a bare minimum Rs. 500 million is needed to get the machinery, now rusted and outdated, up and in rolling condition, plus US$ 10 million in initial working capital. rn

rnMeanwhile, potential investors will also have to strike a deal with the Hatton National Bank and Bank of Ceylon who now own the fixed assets the fabric mill after they foreclosed on the mortgage in December 2003.rn

rnThe two banks, between them wrote off US$ 500 million in loans and interest due from the fail