The Ravaya newspaper has in this week's issue expressed its deep regret to Dr. Sivali Ratwatte, the Chairman of the Upali Group, over its report of Sept. 10, 1995, under the headline ``Divaina mudalali's arms business exposed.''

In its ``clarification of facts and expression of regret'' statement, Ravaya admitted that its report was baseless and agreed that all editorials and articles written by them on the basis of that report would be withdrawn.

The state media made great play of the ``arms dealer'' allegation and government personages made variety of statements based on it. It was even alleged that Upali Newspapers' opposition to the devolution package was its interest in arms dealing.

The Ravaya apology was a result of a court settlement reached following an action filed in the Mount Lavinia District Court. In terms of this settlement, Ravaya said that a further investigation of this matter had revealed that although Asian International (Pvt.) Ltd. had been registered as a supplier to the army and navy, none of the companies that has acted as its international suppliers have supplied arms and ammunition on behalf of Asian International to the army and navy.

The companies listed as international suppliers of Asian International in this regard are Security Eye of London, L.V.A. of Singapore, Fabric National Dealer Industries, Belgin of Singapore and Prakone of Israel.