Thursday, June 29, 2017

SriLankan wins right to run its own duty free operations

 Ruwan Fernando, Judge of the Commercial High Court, Colombo, refused the interim injunctions sought by DFP Canada Ltd against SriLankan Airlines Ltd.

DFP Canada Ltd (DFP) filed action claiming that DFP was the actual company behind the highly controversial “Phoenix Duty Free Services” (“Phoenix”) and that DFP had a ‘right of first refusal and right to match an offer under the Supply and Concessionaire Agreement granted to Phoenix Duty Free Services in 2012 in violation of standard tender procedures of SriLankan Airlines.

The court also dissolved the enjoining orders previously issued. The Report of the Board of Inquiry headed by J.C.Weliamuna, PC heavily criticised the awarding of duty free supply and concessionaire contract to Phoenix violating the procedures of the company and this transaction is currently being investigated by the law enforcement authorities.

 

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