Flour Mill giant Singapores Prima Ceylon Ltd has filed papers for arbitration against the government for failing to honour two clauses in its agreement.
A fresh deal signed by the government and Prima in April 2001, specified that flour giant will not be discriminated against any other company/person engaged in the producing wheat flour.
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rnThe government also promised to put new players and Prima on a level playing field, with regards to taxation, incentives, concessions and so on.rn
rnHowever, the new flour mill project endash Serendib Flour Mill endash promoted by UAE giant conglomerate the Al Ghurair Group, was given a number of concessions, Prima alleges.rn
rnSerendib Flour Mill has been allocated land leased from the Prince Vijaya Quay, which belongs to the Sri Lanka Ports Authority.rn
rnPrima claims that the land has been rented out on concessionary terms.rn
rnIn January, a consortium of six banks led by National Development Bank pumped in Rs. 3.6 bn to the Serendib Flour Mill proje