July 19, 2019 (LBO) – Sri Lanka’s Board of Investment is to take stern action against Hayleys Free Zone Limited for failing to meet commitment laid out in their BOI agreement.
The BOI has permitted Hayleys Free Zone Limited in May 2014, to operate an integrated logistics center and entrepot trading as permitted activities within the Katunayake Export Processing Zone.
Releasing a statement, the BOI said the company has failed to meet their commitment and has from time to time requested extensions to comply, citing technical and other constraints.
Clarification – Importation of Post-Consumer goods for re-export by a BOI Enterprise
The recent reference in media regarding 102 containers of contaminated material imported by a BOI enterprise is factually incorrect in that the consignee of the said goods is not a BOI enterprise, operating within a BOI zone or otherwise. These containers are lying in the Port of Colombo.
The BOI further wishes to clarify on the activities of a BOI enterprise operating under Hub Regulation No. 01, of 2013, namely Hayleys Free Zone Limited (HFZL). The BOI has permitted this company in May 2014, to operate an integrated logistics center and entrepot trading as permitted activities within the Katunayake Export Processing Zone.
HFZL had imported from The United Kingdom 130 containers of used mattresses and carpets for the purpose of re-export, in October 2017. Out of these containers 29 containers have been re-exported.
However, in January 2018, having observed that a significant amount of this cargo was unloaded/stored within the free zone premises without being re-exported as envisaged, BOI has given written instructions to the company to strictly comply with commitments laid out in the BOI agreement and the applicable environmental regulations. Simultaneously the BOI took further steps to suspend all future import of used material and the company committed to clear all cargo by end February 2018.
The company however, has failed to meet this commitment and has from time to time requested extensions to comply, citing technical and other constraints.
Since the company has failed to re-export the goods as committed the BOI Board has decided to take stern action against the company with a view to concluding this matter expeditiously.
Board of Investment of Sri Lanka