Cabinet...

The Rakna Arakha Lanka Ltd was established as a government-affiliated security service to provide security to special institutions such as economic targets, public institutions, and private institutions considering the then security status in the country as army officers who provided such security had to be deployed in process of maintaining law and order in the country.

“With the present peaceful situation in the country it has been observed that such a firm is unnecessary,” President Maithripala Sirisena told the Cabinet in his letter requesting to wind up RALL. The functions carried out by RALL will be assigned to the Civil Security Department and in the sea to the Sri Lanka Navy. The liquidation process of the company will be carried out according to the instructions of the Attorney General. Net assets of the company as at 31.08.2016 was Rs. 3,264 million and 160 million rupees deposited by the Avant Guard Company.

The report forwarded by the COPE Committee on 09.08.2016 it is observed that a disparity had prevailed in the distribution of dividends, where more than 75% had gone to the Avant Guard. It was an unfavourable situation, President Sirisena told the Cabinet.

As per the COPE report, the legality of the agreement established with external parties was complicated and ambiguous. Without entering into new contracts, take necessary actions only to conduct agreed services by attaching the employees to the Civil Security Department through a special mechanism. Advice of the Legal Draftsman in respect of’ the matters pertaining to the liquidating of the company as several cases were already being heard by court will be obtained in respect of arrears which should be charged from Avant Guard to the RALL (1,776 million rupees). This amount which should be paid to the Sri Lanka Navy from Avant Guard. The liquidation of the RALL will be carried out by following the advices of the Legal Draftsman, as this Company cannot be run any longer and due to the peaceful environment that is prevailing at present and the fact that the requirement of a Private Security Service is no longer needed, President Sirisena said..