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Submissions with regard to the Constitutionality of the Port City Bill have been made to a five-member Panel of the Supreme Court by several petitioners. The Court has informed the Petitioners that its determination will be communicated to Parliament by the end of the Month.

The two questions, in respect of which the Supreme Court will give its opinion to Parliament, will be whether the Bill requires to be passed by a two-third majority, or whether in addition to a two-third majority a referendum too is required. If the answers to both questions are in the negative, then the Bill may be passed by a simple majority.

The Court will not pronounce on the merits, or otherwise, of the provisions of the Bill, but will only indicate the process (whether by two-third majority or in addition a referendum ) by which the Port City Bill can become law. Whether the framework within which the Port City will function as set out in the Bill is beneficial to the country has to be decided by the Legislature and the public.

Unfortunately, such a decision is likely to be taken without the benefit of a national conversation with regard to the contents of the Bill. The fact that the Bill was suddenly thrust on the people during the New Year Holidays leaving only a couple of days for would be petitioners to challenge the Bill is an indication that it was meant to be done without the benefit of a proper discussion among the people. This is further confirmed by reports that the Government Publications Bureau had only 30 copies of the Bill (10 each in Sinhala, Tamil and English) available for members of the public who wished to obtain copies of the Bill.

The absence of a vigorous public discussion in respect of the Bill will, in the long run, only work against the country’s interests and may even prevent the achievement of the professed objectives for which the Port City is being set up. As veteran Communist Party Leader D E W Goonesekera has urged, it is better that a White Paper is published on the subject enabling the Government to obtain the views of all stakeholders and concerned citizens before embarking on a course of action that will have far-reaching consequences for the country.

It is not only the Governance structure of the Port City that has to be examined, but also the geopolitical implications of having such an enclave close to the southern tip of India which has a strained relationship with China. It must be realised that the context in which Sri Lanka and China signed a Rubber Rice Pact in 1953 is no longer prevalent and much has changed since then. At that time it was the friendship between the two countries that was the dominant factor, while today it is obvious that China’s intentions are not entirely altruistic.

China’s attempt to spread its influence globally is evidenced by its Belt and Road Initiative and dealings with different countries. In Sri Lanka its strategy of showering assistance to an ailing economy is not entirely for laudable reasons. The recent statement by senior Government Parliamentarian S B Dissanayake to a senior monk in Kandy is reflective of this. Dissanayake told the monk that “China has told us to take whatever money we need and give it back whenever we can. The Government has been given a clear message from China that they can give us any amount of money we need, returnable when the country can do so.”

In fact, the Chinese footprint in the country is already very apparent with many Chinese companies being very active here, and even a number of shops with name boards containing Chinese lettering scattered all over the city. Fears that the Port City may end up being a Chinese colony only add to Sri Lanka’s concerns.

While Sri Lanka as a sovereign State is entitled to chart its own economic course, it is prudent to be sensitive to the concerns of our neighbours, particularly India. It does not make sense to have an uneasy India constantly peering over its shoulders to keep track of what is in its backwaters.

One may recall that when the Indo-Sri Lanka Agreement was signed in 1987, one of the clauses in the Agreement related to the Voice of America broadcasting stations in Iranawila which India was apprehensive about. At that time India’s ties with the Soviet Union were very strong and the United States was viewed with suspicion. All these competing concerns of Sri Lanka’s international friends need to be looked at closely and balanced while still pursuing our own National Interests.

Hasty and ill-considered action can hardly take into account all these factors. The fact that all the implications of the Bill have not been fully thought out is apparent from the fact that even while the Supreme Court was hearing submissions on the Constitutionality of the Bill, the Government was proposing amendments to its own Bill.

The Advocata Institute has, in an article published in the Financial Times of April 23, 2021 pointed out that “Port City’s success, and indeed its importance to the country, will only depend on its ability to provide a superior governance system. To be a success, Port City will need to guarantee greater economic freedoms to its investors, have an efficient legal system with clear and predictable laws, and decisions based on precedent. It needs to minimise discretion of the commissioners and have a fair and transparent regulatory structure.”

As pointed out by several commentators, these features are absent in the current Bill. The Advocata Institute goes on to make some further salutary observations:

“Only good rules, predictable policies, and oversight can overcome these challenges. A focus on better governance, rather than tax breaks and giveaways, would help keep the house in order.

The Port City can give the country a shortcut to attract foreign investments, provided it focuses on the right thing – better economic governance.”

Only wider debate and discussion can help us to achieve these objectives. It would be in the national interest, therefore, for the Government to withdraw the current Port City Bill and present a White Paper to the country to generate wider discussion on the subject.

(javidyusuf@gmail.com)