Bunker Compensation

Dec 03, 2008 (LBO) – Sri Lanka’s John Keells Holdings group said that the Supreme Court had ruled that former employees of its bunker fuel unit be paid 153 million rupees it had kept as a deposit for compensation. To receive instant alerts from LBO on your Dialog mobile type ‘lbo’ and send to 678

JKH unit Lanka Marine Services (LMS) had had originally deposited the money on a court order, as part of a case where a tax holiday was revoked and a land ordered to be returned to the state.

The court order to make the termination payment came when a fundamental rights application filed by 77 employees of LMS on November 26 came up in the court Wednesday.

“The court made order that the commissioner general of labour makes order that the sum of 153 million rupees be paid to the employees of LMS,” the JKH statement said.

The employees demanded compensation after the Supreme Court cancelled JKH’s acquisition of LMS in a privatisation deal. The bunkering business, which for long had an effective monopoly on selling ship fuel in the Colombo, was one of JKH’s main sources of profit.