A proposed media takeover by Kasagala Green Plantations (Pvt) Ltd has become trapped in a legal battle, while the company simultaneously faces a Central Bank investigation into its controversial investment activities.
Kasagala had been negotiating with Sky Media Network (Pvt) Ltd to acquire Monara TV, a television channel that entered Sri Lanka’s broadcasting market under the ownership of Lycamobile founder Subaskaran Allirajah. The channel, however, shut down after operating for only about a year, creating an opportunity for a potential new owner to revive the brand.
That opportunity has now stalled indefinitely after the Commercial High Court of Colombo issued an enjoining order preventing the transfer or alienation of Sky Media Network’s shares. The order followed a lawsuit connected to allegations involving unpaid facilitation commissions claimed by the Sri Lanka European Union Business Council.
The continued extension of the court order has placed the acquisition process on hold, leaving the future ownership of Monara TV uncertain. What appeared to be a major expansion move by Kasagala into the media industry has instead become another source of legal complications.
The stalled acquisition comes at a difficult time for Kasagala, as the company is also under investigation by the Central Bank of Sri Lanka. The CBSL has launched an inquiry under the Finance Business Act No. 42 of 2011 to examine whether the company’s agricultural investment programmes operate in violation of financial regulations.
At the centre of the investigation is the question of whether Kasagala’s high-return investment arrangements constitute an illegal public deposit-taking scheme. Such activities require regulatory approval, and authorities are examining whether the company’s operations fall within the scope of licensed financial businesses.
Public controversy intensified when Kasagala director Malwattage Ranjith Nandana Pieris stated during a television interview that the company was regulated by the Central Bank and submitted compliance reports to the regulator.
The CBSL quickly challenged those remarks, issuing a public statement denying any regulatory relationship with Kasagala. The Central Bank said the claims made by the director were inaccurate, misleading, and without legal basis.
The dispute has raised concerns among observers regarding transparency, corporate communication, and the responsibilities of companies involved in attracting public investments. The Central Bank investigation will determine whether Kasagala’s activities comply with Sri Lanka’s financial laws, while the court proceedings will decide whether the proposed Monara TV acquisition can proceed.
For Kasagala Green Plantations, the coming months may prove critical. A blocked media acquisition and an ongoing regulatory probe have placed the company under intense public and institutional scrutiny, creating significant challenges for its future operations and credibility.