Sri Lanka: The Industry and Commerce Ministry has queried the sale of Holcim Lanka, LafargeHolcim’s business on the island. Industry and Commerce Ministry Secretary TMKB Tennakoon contacted Holcim Lanka in March 2016 to point out that the government has not benefitted from deals with the cement producer to allow it to build a quarry and that it can control attempts to sell some of its assets, according to the Daily News newspaper.
Tennakoon has raised the issue that the Sri Lankan government is not making profit out of a lease agreement, started in 1993, which gave Holcim Lanka mineral rights to a quarry in Aruwakkalu, Puttalam. In addition the cement producer was granted a 12-year tax holiday on funds borrowed from within Sri Lanka, the ministry claims. The ministry has informed Holcim Lanka that it is in the process of evaluating the terms and conditions of the agreement ‘in order to gain more benefits to the industry and the country’ and warns Holcim Lanka that in the terms of Section 4(b) of the agreement, Holcim Lanka cannot transfer or sub-let the premises without the consent of the government-owned Cement Corporation.
LafargeHolcim announced that it was leaving the cement business in Sri Lanka in early June 2016. The Industry and Commerce Ministry was expressed its interest in buying the local company.
