Court Halts Sale of Sri Lankan Vehicle Factory Amid Contract Dispute

The Colombo Commercial High Court has issued an injunction order preventing a vehicle modification factory in Kaduwela from being closed down or sold. The order was granted to an Indian company, Gaup Automotive Technologies Private Limited, which had entered into an agreement with the Kaduwela-based Autogroup.

Autogroup, which is managed by a foreign board of directors, is now barred from selling or closing the factory. The injunction was issued by High Court Judge Viraj Ranatunga after considering a lawsuit filed by the Indian company.

According to President's Counsel Milinda Gunatilake, representing the Indian firm, Autogroup received US$250,000 to convert two imported American-made Hummer EV vehicles from left-hand drive to right-hand drive. However, Autogroup failed to fulfill this contractual obligation and is reportedly showing a tendency to close the factory, violating the agreement.

It was also stated that a travel ban has been obtained against the foreign directors of the factory from the Kaduwela Magistrate's Court. The case will be heard further on August 20, 2026.