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Lyca Group Accused of Violating Sri Lanka’s Media Ownership Laws, Raising National Security Concerns

January 5, 2025
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Lyca Group Accused of Violating Sri Lanka’s Media Ownership Laws, Raising National Security Concerns
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The London-based Lyca Group, under the leadership of Chairman and Founder Subaskaran Allirajah, has been accused of employing indirect and deceptive methods to expand its presence in Sri Lanka’s media sector, according to a petition filed in the Supreme Court.

The petition, submitted by civil rights activist Jamuni Kamantha Thushara in the public interest, alleges that Lyca Group has used proxies to acquire media entities in violation of Sri Lankan regulations prohibiting foreign ownership of such organizations. It further claims these actions pose significant risks to national security and the sovereignty of Sri Lanka.

A total of 60 respondents are named in the petition, including the Telecommunications Regulatory Commission of Sri Lanka (TRCSL), the Secretary to the Ministry of Digital Economy, the Secretary to the Ministry of Defence, all members of the Cabinet, and directors of ten companies holding television and radio broadcasting licences. Among the respondents are Mr. Allirajah and his wife, Prematharshini Subaskaran.

The petition highlights eight companies that are allegedly owned or controlled by the Lyca Group, many of which hold television and radio broadcasting permits issued by Sri Lanka’s former Ministry of Mass Media and licences granted by the TRCSL.

The document alleges that, “Through illegal and devious corporate structures and proxies, the Lyca Group currently owns or controls 11 television and radio channels and their respective licences.” Companies named in the petition include VIS Broadcasting (Pvt) Ltd, which operates Monara TV, Sitha FM, Red FM, and Tamil FM; GMR Networks (Pvt) Ltd, which operates Athavan TV and Athavan Radio; Colombo Communications (Pvt) Ltd, which runs Shree FM, Ran FM, and EFM; and EAP Broadcasting Company (Pvt) Ltd, which manages Swarnavahini and ETV.

Ownership details further reveal that 60% of shares in EAP Broadcasting are held by Sri Lanka-based Ben Holdings (Pvt) Ltd, while 40% are owned by Singapore-registered Blue Summit Capital Management Pte Ltd. Blue Summit, in turn, is controlled by Portugal-based Pettigo Comercio Internacional Lda, whose majority shareholder is Prematharshini Subaskaran. Pettigo Comercio is also alleged to hold several intellectual properties associated with the Lyca Group.

The petition also describes complex ownership structures, citing entities such as Zentel Holdings (Pvt) Ltd, which owns Sky Media Network (Pvt) Ltd, and Asia Infotech Services (Pvt) Ltd, which holds an 80% stake in MGMR Networks.

Additionally, the petition names individuals including Govindasamy Thuraiappah Jeyaseelan, a group director of Ben Holdings and former COO of Lyca Mobile UK, and Niruthan Rajasundaram, a shareholder in several implicated companies. Both individuals were reportedly denied security clearance by Sri Lanka’s Ministry of Defence but are alleged to control multiple media outlets and licences through elaborate corporate arrangements.

The petition raises alarm over these developments, stating, “In such circumstances, allowing the continued operation of these entities under Lyca Group’s control threatens the legal framework, security, and sovereignty of Sri Lanka.”

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