-
PM to convene party leaders’ meeting on 4 May to finalise PC polls
-
SLFP signals plans to rebuild identity while being in SLPP
-
Basil makes strides towards reuniting SLPP-SLFP coalition
-
SLPP G-10 parties continue to build as a pressure group within Govt.
Concerns over an ‘all-powerful’ commission Making submissions on behalf of the United National Party (UNP) at the Supreme Court of Sri Lanka in opposition to the proposed Colombo Port City Economic Commission Bill, Attorney-at-Law Eraj de Silva argued on Monday (19) that if enacted, this Bill will empower the Commission to regulate all social aspects of life within the area of authority (the Port City). Through the powers contained within the Bill, the Commission will be able to enact “rules” within the Port City that will see punishments comprising fines of a maximum of Rs. 5 million as well as imprisonment. In Sri Lanka, it is the Parliament that decides on the laws of the country; however, in this instance, it will be the Commission comprising individuals who have been appointed at the sole discretion of the President. Furthermore, while the Commission has the power to offer tax exemptions to investors, they have also been empowered in enforcing taxes on purchases and other services within the Port City. The decision to levy parking charges on vehicles or toll levies on vehicles travelling within the region will be at the discretion of the Commission. Accountability over the Commission has been removed and the role of Auditor General has been negated with the option of the Commission seeking out the services of international audit firms. More importantly, the Commission is not answerable to the Cabinet of Ministers or the Parliament of Sri Lanka. As this entity is not a public corporation, but simply an appointed commission by the President, it has the potential to take on a life of its own. There are no clear rules governing their code of conduct. In the case of land, the land of the Port City will be vested with the Commission. They will be free to do what they wish with the land. If the Government attempts to reclaim the land, the option of legal challenge is available for the Commission. It is not clear as to which courts will be hearing these challenges – local courts or international arbitration. Along with the monopoly over residence, the Commission also maintains a monopoly over businesses. It will be at their sole discretion to decide who can conduct any business in the area of authority. Lawyers, doctors, and teachers are amongst the professionals who would require special licensing from the Commission. In the example of lawyers, this will mean that despite them being licensed by the Supreme Court of Sri Lanka to practise law in Sri Lanka, they will need a separate license to practise in the Port City. This license is issued at the discretion of the Commission. A serious question has arisen over the commissioners themselves. They will be appointed by the President, and no qualification or guidelines have been outlined in determining who is eligible for appointment. Furthermore, foreign citizenship is not a disqualifying factor. The question was raised in court as to whether or not the commissioners need to reside in Sri Lanka, or whether they are able to discharge duties from overseas. This has not been addressed in the Bill; however, provisions have been made for the Director General to act on behalf of commission members in their absence. In the event these members are absent from the country, the question of legal jurisdiction is raised. If necessary, are the courts capable of calling back to the country a foreign commissioner? This Bill in essence provides for the possibility of a parallel state to the state of Sri Lanka. Counsel appearing on behalf of the Centre for Policy Alternatives (CPA) and Transparency International Sri Lanka (TISL), President’s Counsel Kanageeswara had submitted to the court that the Bill, if enacted, will affect the fundamental structure of sovereignty. He had submitted that the Bill attempts to create an all-powerful commission that is answerable to no one. Kanageeswaran had referred to the commission as an alter-ego of the current and future presidents. He had further highlighted the fact that although the Bill on multiple occasions refers to the objective to be “advancement of the national economy”, the provisions of the Bill do not reflect this. He had pointed out that there is no advancement of the national economy through the Port City, as investors are not liable to pay taxes to Sri Lanka, and also noted that there is no parliamentary oversight for this all-powerful commission administering the Port City and therefore is contrary to constitutional provisions that vest the control of public finances with Parliament. Also making submissions in court, President’s Counsel M.A. Sumanthiran had highlighted the provisions allowing non-citizens to be appointed to the all-powerful commission proposed to be established under the Bill, which would affect the sovereignty of Sri Lanka. He had further pointed out that the tax exemptions and exemptions from other levies included in the Bill would be detrimental to the economy of the country. He had stated that the Bill disallows citizens of Sri Lanka who have legally earned money in Sri Lanka to invest in the Port City, and discriminates among citizens and non-citizens to the detriment of the citizens of Sri Lanka. Regarding the offshore banking businesses in the Special Economic Zone, the Additional Solicitor General stated that no license can be granted without the permission of the Monetary Board adding that the commission is aimed at investors who have to feel that they do not have to go before a multitude of institutions. She added that the existing regulatory authorities are not capable of coping with the requirements in the Special Economic Zone. Meanwhile, the Attorney General on Friday (23) had agreed to some changes to the Bill including ensuring the oversight of regulatory power and finances of the commission. The Supreme Court, which concluded hearing the petitions on Friday, recommended to the Attorney General that the phrase “to visit” in Clause 30(1) be omitted, as it would otherwise violate Article 14 of the Sri Lankan Constitution, and require Sri Lankan citizens to get the commission’s approval to enter the Port City area. Furthermore, as per clause 7(1) regarding the composition of the Colombo Port City Economic Commission, the President will appoint members of the Commission ensuring that the majority are Sri Lankans. Amendments are also to be brought in respect of clauses 3 (4), 3 (6), 3(6) (n), 30(1), 40(2), 46(9), 53(1), 58(1), 62(5), 63(1) and 68(1) of the Bill at the Committee Stage in Parliament.