Leasing of Hambantota Port to Chinese firm: SC calls for MoU and affidavit

By S.S. Selvanayagam

The Supreme Court has ordered the filing of a Memorandum of Understanding (MoU) of 2012 along with an affidavit in respect to the leasing of land in Hambantota to China.

A bench comprising Chief Justice K. Sripavan and Justice Anil Gooneratne re-fixed for support on 13 February the rights petition challenging the framework agreement with China to dispose 15,000 acres of land for investment promotion in Hambantota for converting debt into equity.

Petitioner Vasudeva Nanayakkara cited  the Prime Minister, Minister of Ports and Shipping, Finance Minister, Members of the Cabinet, Members of the Cabinet Appointed Negotiating Committee, State-owned corporates of China namely China Merchants Port, China Communications, the Speaker, Members of the Constitutional Council and the Attorney General as respondents.

The petitioner stated that no bids or tenders were called for from the open market and therefore the selection of China Merchants Port Holding Company was not made in accordance with the procurement guidelines or the procurement manual.

He states that the said matter was handled without consulting the Sri Lanka Port Authority.

He said that the Finance Ministry Secretary has still not finalised a concession agreement and he fears that however the same will be imminently finalised and entered into by the Sri Lankan Government.

Nanayakkara laments that the selection of the Chinese Company and the decision to sign a framework agreement on behalf of the Sri Lankan Government is arbitrary and unlawful.

Manohara de Silva PC appeared for the petitioner. Romesh de Silva appeared for China Merchants Port. Additional Solicitor General Sanjay Rajaratnam with Deputy Solicitor General Nerin Pulle appeared for the Prime Minister, Minister of Posts and Shipping, Finance Minister and Attorney General. Chrismal Warnasuriya appeared for Dr T. Lalithasiri Gunaruwan in a similar petition.