📈 District Court Upholds BOI Rights; Dismisses NFC Claim Against Film Lanka

The Colombo District Court has dismissed a long-standing legal action filed by the National Film Corporation (NFC) against Film Lanka Ltd, ruling that BOI-approved companies are exempt from specific industry levies. • Overall Ruling: Additional District Judge Geethani Wijesinghe rejected the NFC’s claim for Rs. 12.30 Mn plus interest (accruing since 2010). The court held there is no legal liability for the defendant to pay the demanded levies. • The Dispute: The NFC instituted the case in 2012, alleging that Film Lanka Ltd—operator of the Cine City cinema complex—owed levies under the National Film Corporation Act from 2002 onwards. • Legal Precedent: The defendant successfully argued that as a Board of Investment (BOI) approved company, it is statutorily and contractually exempt from such levies. The court affirmed that: • Under Section 17 of the BOI Law, the BOI can grant exemptions from certain laws to attract investment. • These agreements are binding on other state bodies, including the NFC. • Economic Context: The defense emphasized that challenging BOI agreements through "unnecessary litigation" by state bodies repulses both foreign and local investment, undermining the national economy. • Outcome: The court found the NFC failed to prove its accounts or provide a proper accounting basis for the claim, concluding a 13-year legal battle in favor of the private sector enterprise.