Sri Lanka Cricket sues Ceylinco Insurance for US$ 12 m

COLOMBO: Sri Lanka Cricket has filed action in the High Court of the Western Province (Commercial High Court) against Ceylinco Insurance Company Limited for US $ 11,947,940.

According to the Plaint filed in the above action a sum of US $ 11,947,940/- had been receivable from Taj Television Limited to Sri Lanka Cricket through the sale of television rights, sponsorship rights, and ground advertising rights in relation to the tri-nation limited over tournament that was scheduled to be held between 14th August 2006 and 29th August 2006 among the Indian, South African and the Sri Lankan Cricket teams.

Sri Lanka Cricket had obtained a Sports Cancellation & Abandonment Insurance Policy from Ceylinco Insurance Company Limited against the loss of revenue that may result from the cancellation and abandonment of the limited over tournament due to riot & strike, civil commotion & terrorism.

On 14th August 2006 less than two hours prior to the commencement of the first match of the limited overs tournament a bomb had been exploded by the LTTE at Ananda Coomaraswamy Mawatha, (Green Path) Colombo 3 causing the death of four Army personal and four civilians and damaging over 13 vehicles.

Thereafter the South African team had declined to take part in the limited over tournament and departed from Sri Lanka on 16th August 2006 causing the limited over tournament to be cancelled and abandoned.

Sri Lanka Cricket had lost a revenue of US $ 11,947,940/- receivable from Taj Television Limited as a result of the cancellation and the abandonment of the limited over tournament and Sri Lanka Cricket had duly preferred a claim to Ceylinco Insurance Company Limited under the Sports Cancellation & Abandonment Insurance Policy.

Ceylinco Insurance Company Limited had refused to entertain the claim made by Sri Lanka Cricket. The action has been filed by Sri Lanka Cricket to recover the said US $ 11,947,940/- from Ceylinco Insurance Company Limited.

The Plaint of Sri Lanka Cricket has been settled by Mr. K. Kanag-Isvaran PC. with Dr. Harsha Cabral PC. and Mr. Kushan Illangatillake, Attorney-at-Law instructed by Messrs. Julius & Creasy.