Leasing Hambantota land to China: AG raises preliminary objections against Vasudeva’s FR petition

By S.S. Selvanayagam

The Attorney General yesterday raised three preliminary objections on the maintainability of the fundamental rights petition of former Minister Vasudeva Nanayakkara challenging the framework agreement with China to allocate 15,000 acres of land for investment promotion in Hambantota for converting debt into equity.

His fundamental rights petition was heard in the Supreme Court by a bench comprising Justices B.P. Aluvihara, Sisira J. De Abrew and Anil Gooneratne who granted leave to proceed.

Additional Solicitor General Sanjay Rajaratnam, with Deputy Solicitor General Nerin Pulle appearing for the Prime Minister, Minister of Posts and Shipping, Finance Minister and the Attorney General, raised preliminary objections on the alleged suppression and non-disclosure of the material facts, lack of uberrima fides (lack of utmost good faith) and premature application.

He said the Hambantota Port Development was a continuous process and stated that there had been two agreements signed, one in 2007 when the petitioner was the Minister in the previous Government, and another in 2016.

He stated that as a Minister, the petitioner ought to be aware of these agreements but he failed to disclose them. He said the third phase is the framework agreement and it is a continuous process.

The Court fixed the matter to resume on 29 May.

Nanayakkara cited  the Prime Minister, Ports and Shipping Minister and Finance Minister as well as the 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.

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

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

He says 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 argues that the approval of the Chinese company and the decision to sign the framework agreement on behalf of the Sri Lankan Government is illegal.

Manohara de Silva PC appeared for the Petitioner. Romesh de Silva, with Manjuka Fernandopulle and Niran Anketell, appeared for China Merchants Port.  Faisz Musthapha PC, with Faiza Markar, Niranjan Arulparagasam and Nivantha Sathrasinghe, appeared for Minister Sagala Ratnayake. Additional Solicitor General Sanjay Rajaratnam with Deputy Solicitor General Nerin Pulle appeared for the Prime Minister, Minister of Posts and Shipping, Finance Minister and the Attorney General.

Chrismal Warnasuriya appeared for Dr T. Lalithasiri Gunaruwan in a similar petition.