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Commercial High Court orders AASSL to pay Rs 176 mn for unilateral termination of contract

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By A.J.A. Abeynayake

The Colombo Commercial High Court has ordered Airport & Aviation Services (Sri Lanka) Ltd. (AASSL) to pay Rs 176 million, along with legal interest, to a private company for breaching a contract.

The court ruled that AASSL’s unilateral termination of an agreement to upgrade airport software systems—awarded to the private company—was unlawful. Additionally, the state-owned entity was directed to settle a Rs 24 million bank guarantee, including applicable interest. The ruling was delivered by Commercial High Court Judge K. Priyantha Fernando.

The plaintiff, E.W. Information Ltd., had secured the 2012 tender to modernise the airport’s operational systems in partnership with several foreign technology firms. The company successfully completed three project phases, including software installation and hardware integration, before handing over the system to AASSL.

However, despite a Cabinet directive granting an extension of 3.5 months for project completion, AASSL halted the extension, allegedly due to political influence. The plaintiff argued that such unjustified state interference undermined private enterprises and urged the judiciary to prevent similar unfair practices.

The court acknowledged that the project delays had been caused by AASSL’s own actions and that the contract timeline had been mutually extended. Furthermore, the defendant admitted that the plaintiff had successfully completed the initial three phases.

Judge Fernando ruled that the plaintiff had acted in compliance with civil contract regulations and that the damage claimed were reasonable, thereby upholding the compensation order.



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CEYPETCO Fuel prices increased from midnight today (21)

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The Ceylon Petroleum Corporation (Ceypetco) has announced a revision of fuel prices, effective from midnight today (21).

Accordingly,

Auto Diesel – Rs. 382                 (increased by Rs. 79)

Super Diesel – Rs. 443               (increased by Rs. 90)

Petrol 92 Octane – Rs. 398        (increased by Rs. 81)

Kerosene – Rs. 255.                     (increased by Rs. 60)

Petrol 95 Octane – Rs. 455         (increased by Rs. 90)

 

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Advisory for Severe Lightning issued for Galle, Matara, Kaluthara and Rathnapura districts

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Advisory for Severe Lightning Issued by the Natural Hazards Early Warning Centre Issued at 12.30 p.m. 21 March 2026, valid for the period until 11.00 p.m. 21 March 2026

Thundershowers accompanied with severe lightning are likely to occur at some places in the Galle, Matara, Kaluthara and Rathnapura districts after 1.00 p.m.

There may be temporary localized strong winds during thundershowers. General public is kindly requested to take adequate precautions to minimize damages caused by lightning activity.

ACTION REQUIRED:

The Department of Meteorology advises that people should:

 Seek shelter, preferably indoors and never under trees.

 Avoid open areas such as paddy fields, tea plantations and open water bodies during thunderstorms.

 Avoid using wired telephones and connected electric appliances during thunderstorms.

 Avoid using open vehicles, such as bicycles, tractors and boats etc.

 Beware of fallen trees and power lines.

 For emergency assistance contact the local disaster management authorities.

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Sri Lanka says it denied US request to land two aircraft at Mattala airport

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Sri Lanka’s president says his government turned down a request from the United States to land two US combat aircraft at a civilian airport earlier this month.

President Anura Kumara Dissanayake told Sri Lanka’s parliament on Friday that Washington had requested permission for the aircraft to land at Mattala Rajapaksa International Airport in southern Sri Lanka from March 4 to 8.

The request was made on February 26, two days before the US and Israel launched their military offensive against Iran.

“They wanted to bring two warplanes armed with eight antiship missiles from a base in Djibouti”, Dissanayake told lawmakers. “We turned down the request to maintain Sri Lanka’s neutrality”, he added to applause.

The US-Israeli war on Iran has sparked widespread concern globally, as Iranian missile and drone attacks across the wider Middle East have sent energy prices soaring and fuelled fears of a widening conflict.

US President Donald Trump has also been pressuring Washington’s allies to show more support for the war, slamming NATO countries as “cowards” for refusing to help secure the Strait of Hormuz.

Iran has essentially shuttered the critical Gulf waterway  amid the war, forcing leaders around the world to scramble to try to offset the effects on their economies and energy supplies.

Amid the turmoil, many countries have refused to get directly involved in the war while calling for urgent de-escalation.

On Friday, Switzerland announced that it would halt any weapons exports to the US that could be used in military operations against Iran, citing its longstanding policy of neutrality.

“The export of war materiel to countries involved ⁠in the international armed conflict with Iran cannot be authorised for the duration of the conflict”, the Swiss government said.

Sri Lanka’s president also cited his country’s neutrality in the decision to deny the US request to land the two aircraft at Matalla airport earlier this month.

Dissanayake said he had received another request that same day, on February 26, from Iran to seek permission for three naval vessels to make a goodwill visit to Sri Lanka.

“With two requests before us, the decision was clear,” he said, noting that the government denied both to avoid taking sides as signs of escalating conflict emerged.

“Had we said ‘yes’ to Iran, we would have had to say ‘yes’ to the US, as well”, Dissanayake added.

In early March, Sri Lanka’s navy rescued 32 Iranian crew off IRIS Dena after it was torpedoed by a US submarine off the country’s coast, killing at least 84 people.

Days later, Sri Lanka evacuated more than 200 crew members from a second Iranian vessel, IRIS Bushehr, after the ship requested assistance from Colombo.

[Aljazeera]

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