News
Commercial High Court orders AASSL to pay Rs 176 mn for unilateral termination of contract
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.
News
Establishment of an Institutional Framework to Inagurate Upper Hydro Catchment Areas Management Authority
Policy approval of the Cabinet of Ministers was granted at their meeting held on 08.06.2026 to establish the Upper Hydro Catchment Areas Management Authority for identification and
execution of a formal and long – lasting remedy to secure the central hills including the upper hydro catchment areas enabling them to sustain amidst extreme weather conditions
due to natural calamities and human activities as well as to be used for the sustainable development of the country.
Accordingly, a concept paper has been prepared including
institutional structure, activities, powers, active subject area as well as administrative and coordination mechanism for the proposed authority by an expert technical committee appointed by the Secretary to the President.
Based on the said concept paper, the Cabinet of Ministers granted approval to the resolution furnished by the President to instruct the Legal Draftsman to prepare a draft bill including legal provisions required for the establishment of Upper Hydro Catchment Areas Management Authority.
News
Introduction of Flora and Fauna (Regulation of actions of the Indigenous Community within the nominated areas) Regulations
With the objective of securing the traditional livelihood and the eco system of the indigenous community, it has been recognized the necessity of introducing a formal regulation methodology to secure their engagement in livelihood activities by being more sensitive to the existing laws.
Thereby, the Fauna and Flora (regularizing) regulations under the Fauna and Flora Protection Ordinance (Authority 469) have been prepared so that nominated activities within the prescribed area to a member of the indigenous community
who has been registered for securing the rights acquired from law or custom or usage or traditional stance to execute an act within a certain state land that is fundamental to the survival of the indigenous community permission can be granted
Accordingly, the Cabinet of Ministers granted approval to the resolution furnished by the Minister of Environment to publish the said regulations in the government gazette notification and thereby submit to the Parliament for its concurrence.
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