December 15 (LBO) – Sri Lankan pay television service Comet Cable is facing a withdrawal of its broadcast rights, unless royalties owed to a joint shareholder since 1997, are paid up. Comet Cable has an 18,000 strong customer base and is one of the oldest pay television companies in Sri Lanka with 18 paid channels ranging from movies, sports, fashion to music.
The service is currently available only in the capital Colombo and suburbs.
The Southern Development Authority (SDA) owns the broadcast license for Ruhuna 2001 Multivision (Pvt) Limited, used to provide pay television service Comet Cable in Sri Lanka.
The SDA is also a 50 percent shareholder in Multivision, with the balance held by Australian company Charmway International, which manages the company.
The authority says it has not received royalty dues from its foreign partners for use of the license, as agreed in a joint venture agreement signed in 1997. The royalties were to be used to develop the south of the island.
“Charmway International has been given one month™s notice to pay 12 million dollars in due investment, allocate funds for the proposed ˜Ruhuna 2001 stu