Daily Mirror (Sri Lanka)

SC suspends President’s gazette

- BY S.S.SELVANAYAG­AM

The Supreme Court, yesterday granted interim relief to the petitioner - Sri Lanka Gateway Industries (SLGI) - operative till May 21, suspending the President’s Gazette notificati­on revoking the land grant made to the Board of Investment (BOI) in Sampur, Trincomale­e where the land was in turn leased out to SLGI for a US $ 4 billion Project.

The Petitioner alleged that the master plan of the aforesaid project included the developmen­t of deep water jetty, bulk commoditie­s terminal with stock filling and blending capabiliti­es, power generation plants, sugar industries

The bench comprised of Justice Rohini Marasinghe, Justice Buwaneka Aluwihare and Justice Upali Abeyratne. The case will resume before the same bench on May 21 to support for leave to proceed and interim relief.

The Petitioner alleged that the master plan of the aforesaid project included the developmen­t of deep water jetty, bulk commoditie­s terminal with stock filling and blending capabiliti­es, power generation plants, sugar industries, fertilizer industries, transshipp­ing coke and thermal coal, iron industries, oil and petrochemi­cal industries, car manufactur­ing/assembling plants and host of other heavy industries and complement­ary industries.

The said project is estimated, according to the Petitioner, to generate more than 5000 direct employment and employment to 20, 000 indirectly. The Petitioner also stated that it had entered in to an investment agreement with the BOI in 2012 which was a landmark investment agreement to invest/facilitate US$ 4 billion, which is the highest Foreign Direct Investment in Sri Lanka’s history.

The Cabinet of Ministers, having carefully analyzed the project proposal and having apprehende­d the potential of the project and the opportunit­ies that would be created, approved the aforesaid project proposed by the Petitioner to be gazetted as a Strategic Developmen­t Project within the meaning of Section 3 of the Strategic Developmen­t Projects Act, No. 14 of 2008 and thus has now received the

The Petitioner complained to the Supreme Court that the Petitioner is severely affected and prejudiced by the purported order made by the President by cancelling and annulling the special land grant

approval of the Parliament. The Petitioner complained to the Supreme Court that the Petitioner is severely affected and prejudiced by the purported order made by the President by cancelling and annulling the special land grant given to the 1st Respondent, BOI, and revoking the order previously made by the President declaring the said area as an industrial zone under Section 22A of the BOI Law.

The Petitioner, SLGI also complained that it has incurred considerab­le amounts of money and has entered into several investment agreements and the said illegal revocation of the State Grant and the declaratio­n under Section 22A of the BOI law would cause irreparabl­e damage and loss not only to the Petitioner but also to the country as no investor would invest in these circumstan­ces.

Therefore, the Petitioner states that cancelling and annulling the special land grant given to BOI without giving a hearing to the Petitioner who is an affected party is a gross violation of rules of natural justice as well as violation of its right guaranteed under Articles 12(1) and 14(1) (g) of the Constituti­on, especially in the circumstan­ces where the Minister of Investment Promotion under whose purview the BOI falls has objected to the release of the Sampur land and cancellati­on of the agreement it entered into with the Petitioner.

The Supreme court, having heard the parties, granted interim relief restrainin­g any one and/or more and/or all of the Respondent­s and their servants, agents, delegates from taking any step to evict the Petitioner from and/or interferin­g with the peaceful possession of the said land, leased out to the Petitioner by the 1st Respondent, the BOI, operative till 21st May.

Mr. Gamini Marapone PC with Uditha Egalahewa PC, Sanjeewa Jayawarden­e PC, Navin Marapone Attorneyat-law and Ranga Dayananda Attorney-at-Law appeared for the Petitioner. Mr. Ronald Perera PC appeared for the BOI and Mr. Nerin Pulle, Deputy Solicitor General appeared for the Attorney General.

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