Leasing Hambantota land to China: AG moves for time to obtain instructions of new Minister

By S. S. Selvanayagam

The Attorney General yesterday (29) moved for time to obtain instruction from newly sworn in Minister of Port and Shipping Mahinda Samarasinghe in respect of the rights petition against leasing land to China in Hambantotoa. The Supreme Court fixed the matter to be resumed on 14 June.

The fundamental rights petition filed by former Minister Vasudeva Nanayakkara challenging the framework agreement with China to dispose 15,000 acres of land for the promotion of investment in Hambantota for converting debt into equity yesterday came before the Bench comprising Justices B. P. Aluvihara, Sisira J. De Abrew and Anil Gooneratne.

The Attorney General on 2 May raised three preliminary objections on the maintainability of the fundamental rights petition. 

Additional Solicitor General Sanjay Rajaratnam with Deputy Solicitor General Nerin Pulle appearing for the Prime Minister, the Minister of Posts and Shipping, the Finance Minister and the Attorney General had raised the preliminary objections on (1) the alleged suppression and non disclosure of the material facts, (2) Lack of Uberrima fides (lack of utmost good faith) and premature of the application.

Additional Solicitor General Rajaratnam had submitted that the Hambantota Port Development is a continuous process and stated that there had been two agreements signed: One in 2007 and another in 2016 when the petitioner was a Minister in the previous government.

He had also submitted 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. 

Petitioner Vasudeva Nanayakkara cited the Prime Minister, the Minister of Ports and Shipping and the Finance Minister as well as 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/tenders were called from the open market and therefore the recommendation/selection of China Merchants Port Holding Company was not made in accordance with the Procurement Guidelines or the Procurement Manual.

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

The Finance Ministry Secretary has yet to finalise the concession agreement, Nanayakkara said, adding that he fears that however the same would be imminently finalised and entered into by the Sri Lankan Government.

The selection/approval of the Chinese Company and decision to sign a framework agreement on behalf of the Sri Lankan Government is arbitrary, capricious, mala fide and illegal and unlawful, stated the petitioner.

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

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