BOI to act on company over containers with contaminated material

The Board of Investment (BOI) of Sri Lanka has decided to take action against Hayleys Free Zone Limited (HFZL) over the importation of 102 containers of contaminated material.

The BOI said that it had permitted the company in May 2014 to operate an integrated logistics center and entrepot trading as permitted activities within the Katunayake Export Processing Zone.

HFZL had imported from The United Kingdom 130 containers of used mattresses and carpets for the purpose of re-export, in October 2017. Out of these containers 29 containers have been re-exported.

However, in January 2018, having observed that a significant amount of this cargo was unloaded/stored within the free zone premises without being re-exported as envisaged, the BOI had given written instructions to the company to strictly comply with the commitments laid out in the BOI agreement and the applicable environmental regulations.

Simultaneously the BOI took further steps to suspend all future import of used material and the company committed to clear all cargo by end February 2018.

The company however, failed to meet this commitment and has from time to time requested extensions to comply, citing technical and other constraints.

Since the company has failed to re-export the goods as committed the BOI Board has decided to take stern action against the company with a view to concluding this matter expeditiously.

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