Sri Lanka's Supreme Court on Friday suspended the release of land in Sampur, Trincomalee, as pledged by the government earlier this week.
The court suspended the gazette notification from President Maithripala Sirisena, ordering the release of land, held by the Board of Investment (BOI) which leased it to Sri Lanka Gateway Industries (SLGI).
SLGI petitioned against the release, complaining that it has incurred considerable amounts of money due to the various agreements it had entered.
Only last week the government announced it would be shifting a navy camp in Sampur and stopping Sri Lankan Board of Investment projects, in order to release land to resettle displaced villagers in the East.
In March the government pledged to return 818 acres of land in the Sampur region of the Eastern province to "original owners" by the end of April.
Sri Lankan government pledges to return 818 acres in Sampur (24 March 2015)