Sri Lanka's Supreme Court has ruled against a former ATG Ceylon employee, ordering him to pay Rs. 5 million in damages for unlawfully disclosing the company's confidential manufacturing information to a South Korean competitor.
The Supreme Court delivered judgment on July 27, 2026, reversing a 2019 Commercial High Court decision that had previously dismissed ATG Ceylon's case. The court found in favour of the company, which manufactures industrial gloves as a Board of Investment enterprise.
ATG Ceylon had filed suit against a former process control technician employed by the company for over a decade. The company alleged that the employee had transferred confidential manufacturing processes, proprietary technology, and trade secrets related to its "Maxi" glove range to a Korean manufacturer in exchange for financial compensation. The Supreme Court determined on a balance of probabilities that the former employee had indeed entered into arrangements with the Korean firm to transfer ATG's confidential technological knowledge and manufacturing expertise.
While ATG sought Rs. 200 million in damages, the Supreme Court awarded Rs. 5 million, acknowledging that although the company's precise financial losses were difficult to establish, its swift legal intervention had limited the potential harm from the attempted disclosure. The court also issued a permanent injunction prohibiting the former employee from further disclosing or utilising ATG's confidential information, trade secrets, proprietary technology, and manufacturing processes. The ruling confirms the employee's continuing legal obligation to maintain confidentiality regarding the company's protected information.
