In a decisive move, the Sri Lankan Cabinet has turned down the proposal to lease the 'Channel Eye' channel, owned by the Sri Lanka Television Corporation, to the 'Lyca Group' (LYCA). The decision was reached during a Cabinet meeting convened on the afternoon of August 14, with President Ranil Wickramasinghe presiding over the session.

The rejection comes after an earlier announcement in July, when the two parties involved, 'Channel Eye' and Lyca Group, had apparently reached an agreement for the lease. However, it has now come to light that this agreement was made without obtaining the necessary prior approvals from the Rupavahini Board of Directors or the Ministry of Mass Media.

Mass Media Minister Bandhula Gunawardena submitted the relevant cabinet paper for consideration. The decision underscores the importance of proper procedure and adherence to regulatory frameworks in such matters. The ownership status of 'Channel Eye' remains unchanged as a result of the Cabinet's decision.

Lyca Group is owned by Allirajah Subaskaran, who is a high-profile businessman with over 18 years entrepreneurial experience in the telecommunications industry.