Sri Lankan Files Suit (fwd)

[Robert Weissman <rob@essential.org>]

                      Dow Jones Newswires -- June 29, 1998
                   Sri Lankan Tailor Sues B.A.T Indus Unit
                   Over Smoking -Report

                   Dow Jones Newswires

                   COLOMBO (AP)--A Sri Lankan tailor dying of lung cancer is
suing a
                   British- and U.S.-owned tobacco company, a newspaper reported
                   Monday.

                   Kurukulasuriyage Cecil Perera, 46, filed the lawsuit
claiming 2.5 million
                   rupees ($1=LKR65.37) in damages on Friday against the Ceylon
                   Tobacco Co., claiming it was responsible for his
addiction to nicotine, the
                   Island newspaper reported.

                   Ceylon Tobacco, which has a monopoly on the country's tobacco
                   industry, is a publicly listed company, in which
London-based British
                   American Tobacco, a unit of B.A.T Industries PLC (BTI)
holds 84%
                   share and Philip Morris Cos. (MO) holds eight percent stock.

                   It is the first time a tobacco company is being sued by a
smoker in the
                   Indian Ocean island, where health authorities estimate
more than half of all
                   adult men smoke.

                   The case in Colombo's district court is likely to have
far-reaching
                   consequences since Ceylon Tobacco is the single largest
private sector tax
                   contributor.

                   It had a net sales of LKR18.7 billion in 1997, of which
LKR16.3 billion
                   was paid in taxes. This is larger than the combined state
expenditure on
                   health of LKR9.58 billion.

                   The company's net profit for the year ended Dec. 31 was
LKR572.4
                   million against LKR575.2 million on-year.

                   The court has not yet set a date to hear the case. Sri
Lankan law prevents
                   both Perera and Ceylon Tobacco from commenting publicly.

                   The lawsuit came days after Sri Lanka's government
announced steps to
                   curb alcohol and tobacco use.

                   Legislation is to be introduced in six weeks to stop
people bringing in
                   liquor and cigarettes duty-free. Foreign investors who
invest in liquor or
                   tobacco will not be given tax breaks which investors in
other industries
                   get.

                   Two weeks ago, President Chandrika Kumaratunga banned
cigarette
                   and liquor advertisements on all private and state radio
and television
                   channels and state newspapers starting next January.
Sponsoring of sports
                   and cultural events by cigarette and alcohol companies
will also be
                   discouraged.