In 89 pages of written submissions made with regard to the privatization of the Sri Lanka Insurance Corporation (SLIC) which has been challenged in the Supreme Court, the Distilleries Company of Sri Lanka (DCSL) has submitted that the petitioners and Mr. Nihal Sri Amarasekera have failed to establish that even if there had been errors in the procedure adopted, that this had ultimately resulted in a loss to the state.

The judgment in this case is pending and is expected shortly.

The company has published the written submissions in its website stating that there will be "disastrous consequences" to the SLIC, investors, policy holders, members of the staff of SLIC as well as shareholders of DCSL if the privatization is undone.

These submissions have said that approximately 13,000 shareholders of DCSL will be directly affected "as it can be safely assumed that the market price of DCSL shares will plunge drastically."

"This may also have an adverse result on the share market as well as other commercial transactions," the submissions have said.

Mr. Damien Fernando, a director of the DCSL group, last week explained why the submissions were not accessible on the DCSL group website as stated in the company’s annual report. He said "there is a ghost site remaining as http://dcslgroup.com that takes visitors to the page that says the site is ``under construction.’’

"This is a page that was there in 2002 or so when the site was not up," Fernando explained giving the correct access that would take a visitor to the company website where the written submissions have been published.

He expressed regret for the inconvenience caused "due to the above ghost site" and said that the company was trying its best to remove it from the web.

Among the possible solutions submitted in the written submissions made pubic, DCSL said that if Milford Holdings (Pvt) Limited holding 85% of SLIC is considered improper, "then (for the court) to direct the said holding to be sold to DCSL."

It suggested the constitution of a panel of experts with the necessary expertise on actuarial science, insurance and valuation to determine whether the representations made by the petitioners or Amarasekera are valid.

"If the expert panel determines that SLIC shares were of a higher value than what the Government of Sri Lanka (GOSL) recovered by the sale, including the Rs.1,250 million withdrawn and the Rs.676 million for 10% of the shares given to the employees, to direct the buyers to make good the shortfall."

"As submitted in detail in the oral submissions, if the expert panel holds with the position of the respondents and determines that the actual business and asset value of SLIC in 2003 was lower than the Rs.7,922 million (paid by the company), the respondents nevertheless will not have any claim whatsoever as they made their bid of their own volition and have to stand or fall by it.’’