M.S.P. Nanayakkara v The Associated Newspapers of Ceylon Limited – SC APPEAL NO: 223/2016-2022

In the case between M.S.P. Nanayakkara (Applicant–Respondent) and The Associated Newspapers of Ceylon Limited (“Lake House”) (Respondent–Appellant), the court addressed whether the Respondent, a Purchasing Officer, breached the duty of fidelity by failing to disclose his wife’s partnership in a supplier entity, thus creating an undisclosed conflict of interest. The dispute centered on whether such conduct justified the Respondent’s dismissal from employment and whether he was entitled to compensation. The court determined that the non-disclosure constituted a significant breach of trust and warranted termination, setting aside previous orders for reinstatement. The principle reaffirmed is that non-disclosure of material conflicts by employees in fiduciary positions constitutes a just cause