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SRI LANKA: The Contempt of Court Law and Practice In Sri Lanka Violates the International Law and Sri Lankan Constitution

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Asian Human Rights Commission (AHRC) , a Regional Human Rights Organization, having seriouslyobserved and studied the manner in which the Contempt of Court law and the way it is practiceLin Sri Lanka, wish to express its deep concern over the violations of International law and the Sri Lankan Constitution itself, by depriving protection of law to the persons accused of this offence.

AHRC is particularly concerned about the manner Article 105 (3) Of Sri Lanka’s Constitution has been interpreted in a manner that violates International Law and the Constitution of nSri Lanka, 
The reasons on which this concern is based are set out below.

The manner in which the power given to the Supreme Court under Article 105 (3) has been used in the recent past, requires a review, particularly regarding the case of Michael Emmanuel Fernando (No: 1189/2003 U.N. Doc. CCPR/C/83/D/2003 (2005)), the case of S.B Dissanayake (U.N. Doc. CCPR/93/D/1373/2005, Communication No. 1373/2005), and the case of Ranjan Ramanayake (SC Rule No. 1/2018).

Our concerns are as follows:

Disproportionate Punishment as illegal Detention

In all three of these cases, the sentences that have been meted out by way of imprisonment. In the case of Fernando, for one year rigorous imprisonment for allegedly talking loud in court; in the case of S. B Dissayanayake for speaking the word ‘‘shameful court’ in a public meeting outside courts, two years rigorous imprisonment; in the case of Ranjan Ramanayake referring to judicial corruption for which he was sentenced to rigorous imprisonment for four years plus the loss of participation in elections for seven years. In the first two cases, the United Nations Human Rights Committee, having considered the communications made to it by Fernando and Dissanayake, held that these sentences of imprisonments amount to disproportionate punishment and that under international law, disproportionate punishment amounts to illegal detention. Under Sri Lankan law, protection from illegal detention has been guaranteed by the constitution, which notes it is a violation of fundamental rights. Thus, this practice of disproportionate punishment itself is a violation of the international and the Sri Lankan law and the fact that no reasons have been given for such disproportionate and harsh punishments aggravates the situation. Thus, this use of disproportionate punishments, which is now getting established as a permanent practice, is a threat to the very idea of a fair trial and also the notion of the rule of law. It is likely to have a deadening effect on the entire system as lawyers, litigants and anyone else who is dealing with the system of administration of justice is likely to be seriously intimidated when they have to pursue their claims for justice under such circumstances.

Contempt of Court – An offence without a Definition

While Article 105 (3) of the constitution provides for the power to deal with contempt of court to the supreme court and the court of appeal and the discussion relating to punishment by way of imprisonment or fine or both, the offence of contempt of court has not been defined by any law in Sri Lanka. For all laws that carry criminal punishments in Sri Lanka, each offence is defined in terms of the element, which constitutes the offence and also the maximum punishment that the court is entitled to give in case the charge against the accused is proved beyond a reasonable doubt. Thus, the universal practice of defining an offence in Sri Lanka relating to all crimes including such serious crimes as terrorism, enforced disappearances, murder and rape and all such serious crimes, followed in the case of contempt of court offences.

Following is a Sample of How Crimes are Defined in Sari Sri Lanka, taken from the Penal Code;

Murder

Except in the cases hereinafter excepted, culpable homicide is murder

Firstly- if the act by which the death is caused is done with the intention of causing death; or

Secondly- If it is done with the intention of causing such bodily injury as the offender knows to be likely to cause the death of the person to whom the harm is caused ; or

Thirdly- If it is done with the intention of causing bodily injury to any person, and the bodily injury intended to be inflicted is sufficient in the ordinary course of nature to cause death; or

Fourthly- If the person committing the act knows that it is so imminently dangerous that it must in all probability cause death, or such bodily injury as is likely to cause death, and commits such act without any excuse for incurring the risk of causing death or such injury as aforesaid.

The title of an offence as different to its definition

As shown in the above paragraph the title of an offence is different to the definition of an offence. Contempt of Court is the title or the name of an offence. In Sri Lanka it has not yet been defined. What Article 105 (3) states is the title of the offence. To act under the said article, the offence needs to be defined.

Without a defined offence no trial can be conducted

This practice of conducting trials for undefined offences seriously undermines a fair trial because without an accused knowing exactly with what offence he is being charged, and the elements of that offence and the possible punishment all his rights when facing trial will become un-exercisable. Thus, a charge for contempt of court will be treated as a unique kind of charge unlike a person accused of any other crime. Among other things, this violates the basic fundamental rules of equality before the law which is also a fundamental right enshrined in the constitution of Sri Lanka and also one of the most basic human rights recognized under international law.

Previous case law in Chcchari Mudlier Vs, Mohomadu

Previously, Sri Lankan courts have defined that (See Chcchari Mudlier Vs, Mohomadu, (See 21 NLR 369) all the offences recognized in Sri Lanka are those which are being recognized under a statute. Thus, uniform practice of Sri Lankan courts is to recognize criminal offences only if they are defined in a statute, that is either in the penal code or by way of any other statute. This uniformly practiced legal provision is an entrenched part of the Sri Lankan legal system and a violation of it will have a serious impact on the whole idea of offences as understood in Sri Lanka within the framework of law.

A procedure for trial for Contempt of Court should be the same as other trials

There is also no procedure laid down for the conduct of a trial of contempt of court. Thus, it should be presumed that the same procedures as followed in the criminal procedure court regarding the conduct of a fair trial should also apply to cases of contempt of court. The basics that are laid down in the criminal procedure court is that investigations into a crime could begin only when basic evidence is placed before the investigating authority to the effect that a reasonable cause exists to undertake an investigation into a given offence. Thus, the existence of an offence in terms of law is essential to begin even an inquiry into an offence. Thereafter, it is investigated by procedures laid down in the criminal investigations division recognized under the law. After all the evidence have been collected, if there is adequate grounds to proceed to the filing of charges or indictment for a particular offence, then the charges would either so filed by the particular investigating authority if it is allowed by law, or all the evidence should be placed before the attorney general. The duty of the attorney general is to go through all the evidence and decide whether the elements that constitute an offence have been established through the available evidence and whether there is a likelihood of success of prosecution, which may be brought before the relevant court, which would hear the trial. No such investigations have been held in any of these three contempt of court cases. Thus, an examination of evidence by the attorney general was not possible as there was first of all no offence as defined by law and secondly no investigations were conducted, as required by the criminal procedure code.

The Accused in Contempt of Court cases has same rights as other accused

Once an indictment has been filed before the relevant court, the accused is entitled to receive all the evidence that would be used against him during the trial. Thus, the accused becomes aware of the accusation against him and he has time to prepare to answer to the details of evidence and thereby to make a reasonable defence. No such procedure was followed in any of these three cases. Therefore, these trials are regarded as some kind of special trials, but not as normal trials that are recognized under Sri Lankan law. Thus, once again the principle of equality and the principle of equality before the law has been violated. On the other hand, a fair trial is not possible without fulfilling the procedures set out above.

SC as a trial Court

The constitution only names the Supreme Court as a court that has the power to deal with contempt of court. In terms of the Sri Lankan law, this means that the supreme court has a power to hear trial before the supreme court itself or before the court of appeal on contempt of court cases. It only gives the power of hearing and determining a case. However, the manner in which the trial is conducted has to be in terms of the legal procedure in Sri Lanka, which applies to all offences. For example, the high courts of Sri Lanka have the power to hear and determine trials in very serious criminal offences. However, the manner in which the court hears and determines the case is determined by laws which require that a fair trial should take place. As far as the duty to follow procedures of a fair trial, there is no distinction between the power of high courts or a supreme court. The only difference in case of contempt of court is that the Supreme Court and the Appeal Court has the power to conduct the trial before that courts itself. Thus, apparently denial of fair trial procedures as mentioned above, can be excused in terms of Article 105 (3) of the constitution.

The Principle Against Unlimited Discretion

Under the same article 105 (3) the Supreme Court, or the Court of Appeal, there is discretion in giving sentences of imprisonment, or a fine, or both. The word “discretion” has no special meaning only for contempt of court cases. The word discretion of the courts has similar meaning as it is applied to any other court proceedings. In all court proceedings in Sri Lanka as well as within the common law, the basic principle is that the discretion must be exercised on the basis of laws that exist by way of statute. For example, in the normal criminal case, the statute will state that a sentence of not more than ten years could be given if the case is proved beyond a reasonable doubt. Within that context, the discussion of the court means that it could consider various mitigating factors or aggravating factors either to reduce the sentence or increase the sentence within the framework of the statutory limitations. However, since there is no statute laying down the maximum or minimum punishment in the case of the contempt of court, the court is not in a position to exercise discretion till such an offence is created and the sentence spectrum with limitations is laid down by statute. The laws and practices on the use of discretion has been well laid down in Sri Lankan case law as well as in Britain and other common law jurisdictions where the principles related to the exercise of discretion is well laid down.

The Right to appeal must be same as other criminal cases

In all criminal cases in Sri Lanka, there is a right to appeal. However, in the three contempt of court cases mentioned above, the right of appeal has been denied. In the case of Emmanuel Fernando, who applied for leave to appeal to the Supreme Court. The appeal was summarily dismissed. Now the rule that is followed is that there is no appeal against a judgment of the Supreme Court regarding contempt of court cases. This again is a fundamental violation of the right to a fair trial. In even the most heinous crimes such as terrorism, enforced disappearances, murder and the like there is a right of appeal. Only for this criminal offence of contempt of court, there is no such right of appeal. This again is a violation of equality before the law and also a violation of natural justice.

Problems relating to interpretation of Article 105 (3) of the Constitution

Therefore, there are very serious problems associated with the manner in which section 105 (3) of the constitution has been interpreted so far and this matter needs to be corrected to ensure the serious violation of the basic rights of citizens enshrined in the constitution by the highest courts in Sri Lanka itself.


The following definition of rule of law applies to Contempt of Court cases and trials as well,

“The core of the existing principle is… that all persons and authorities within the state, whether public or private, should be bound by and entitled to the benefit of law publicly made, taking effect (generally) in the future and publicly administered in the courts.”

Further to this, he articulated eight principles: (Lord Tom Bingham- Rule of Law)


1) The law must be accessible, intelligible, clear and predictable.
2) Questions of legal right and liability should ordinarily be resolved by the exercise of the law and not the exercise of discretion.
3) Laws should apply equally to all.
4) Ministers and public officials must exercise the powers conferred in good faith, fairly, for the purposes for which they were conferred – reasonably and without exceeding the limits of such powers.
5) The law must afford adequate protection of fundamental Human Rights.
6) The state must provide a way of resolving disputes which the parties cannot themselves resolve.
7) The adjudicative procedures provided by the state should be fair.
8) The rule of law requires compliance by the state with its obligations in international as well as national laws.”

The Loss of memory of basic notions of Criminal Justice

1. Loss of Memory of Basic Notions of Criminal Justice and Jurisprudence of Interpretation of the Constitution:

2. Perhaps due to the 43 years of practice of law under the 1978 constitution, basic notions of justice practiced under the Common Laws, including Rule of Law, is rapidly being lost in Sri Lanka. The result is the loss of the central concern for the protection of the individual. The accused in Contempt of Court cases are all entitled to protection under the law, All who act on behalf of the state, are bound by law and therefore should not exceed their power, Where this fails law can turn into tyranny,

CB Governor stresses the need of changing the mindset towards agri reforms

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Sri Lanka should uproot the “poor and petty” mindset often referred to the agriculture sector and people engaged in the industry, to embed the entrepreneurial streak, Central Bank Governor Nivard Cabraal said.

Speaking at the ‘Knock Knock 2022: The Doorway to Success’ forum organised by the Daily FT and Colombo University MBA Alumni Association on Tuesday, he said Sri Lanka needs to have a structural change in the mindset of the agriculture industry.

“We often refer to fishermen or farmers, as poor fishermen and small farmers. When referring to the dairy farmers, it is always with a piteous mindset. 

“This is the attitude we have towards them. In case, one refers to the farmers or fishermen ‘rich’, we often ponder whether they are into some other business,” Cabraal explained. 

He also said that in developed countries a lot of wealthy people are engaged in the agriculture and fisheries industries. Accordingly, they own multi-day boats, farming machinery and equipment whilst engaging in the corporate world as entrepreneurs.

“By and large, we are comfortable in thinking that fishermen and farmers should be poor. But I think a fundamental transformation in the mindset is necessary to advance the industries,” Cabraal said. 

The Governor also said that agriculture has been a significant contributor to the Gross Domestic Product (GDP) and has been recognised as a thrust sector for development.

Acknowledging the timely topic, he called on the many experts gathered to find new ways to step up agriculture, dairy and fisheries exports.

“Despite being an island, we still import fisheries products. This is something to ponder and find new avenues to increase yield and exports with value additions,” he said.

In addition, the Central Bank Chief said the healthy dialogues of the forums could help to fashion policies to develop these sectors.

What China Said After India Banned 54 More Apps That Threaten Security

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Beijing: China on Thursday expressed serious concerns regarding India’s ban of Chinese apps over security reasons, adding that it hopes India would treat all foreign investors, including Chinese firms, in a transparent, fair and non-discriminatory manner.

“We hope India can take concrete measures to maintain the sound development momentum of bilateral economic and trade cooperation,” Gao Feng, spokesman for the Ministry of Commerce, told a press conference.

India has blocked access to 54 mobile apps, mainly Chinese, government sources told Reuters.

NDTV

Aitken Spence becomes on of the top 100 Global Companies for Sustainability

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Aitken Spence PLC has been recognised in the global ranking of Top 100 Companies in Sustainability 2022, in an independent assessment carried out by the ‘Sustainability’ magazine which is an established international publication.

Aitken Spence is the only Sri Lankan company to have been included in this ranking of global industry leaders such as Nissan, Lenovo, Novo Nordisk, Accenture, McKinsey & Company, Microsoft, PWC, Ernst & Young and KPMG to name a few with Schneider Electric taking the highest position in the ranking.

The DPD Group, who operates in Sri Lanka with Aitken Spence as its network partner, is also listed in this ranking, the local company said The ‘Sustainability’ magazine is a trusted, leading voice on sustainability with a global platform, with a targeted audience of global executives.

Commenting on this recognition, Dr. Parakrama Dissanayaka – Deputy Chairman & Managing Director of Aitken Spence PLC said: “At Aitken Spence, we manage the triple bottom line by controlling the fourth P – the processes we use to run our operations.

This recognition is an appreciation to every single Spensonian who has passionately embraced the group’s commitments to sustainability. It is their effort coupled with the unwavering support of the senior management of the company that has put our sustainability strategy on the global map.

He said “It is what kept us going as we worked through some of the toughest times, we have faced in the last couple of years without compromising on our commitments to sustainability.”

Aitken Spence took an integrated, systemic approach to sustainability more than a decade ago, well ahead of their peers. The company focused on institutionalising policies and procedures to ensure social and environmental governance and sustainability.

The company’s comprehensive policy framework was developed in-house by the group’s core sustainability team taking in the nature and scale of environmental and social impacts, stakeholder needs, lessons learnt, and experience gained across the group’s diversified operations in eight different countries.

 BOI enterprises entered into supplementary agreements worth US$ 165 million

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The Board of Investment (BOI) enterprises recently entered into supplementary agreements collectively worth US$ 165 million to expand their existing operations, BOI officials said. .

BOI Chairman Raja Edirisuriya and Director General Renuka Weerakone signed the agreements on behalf of the BOI.

Aitken Spence (apparel), Asia Pacific Institute of Information Technology, Bodyline, Dialog Axiata, DPL Premier, DPL Universal Glove, Drivima Lanka, EPL Global Freeport, Everest Industrial Lanka ,Golden Star, Inoversal Labels, International Institute of Health Science, MAS Legato, Nature Export, Shiran Apparel, Trischel Fabric and Unichela entered into agreements to expand their current existing  projects.

These investments represented diversified sectors such as the apparel manufacturing and accessories, assembling of refrigerators and cooler accessories for commercial purposes, healthcare education training, business process outsourcing services, hub operation activities to facilitate entreport trading, telecommunication infrastructure, tertiary education in information technology (IT), accessories for the hospitality sector and industrial rubber gloves.

BOI Chairman Edirisuriya said, “Despite the slowdown of economic activities in the world due to COVID pandemic, we are delighted to welcome the existing investors, who have initiated re-investments under the purview of the BOI.

We are also overwhelmed by the confidence placed by the existing investors about the economic policies pursued by the government. This is a welcoming boost to the country’s stability of the economy, she added.

Foreign Direct Investment has been on a falling trend since its record high of 1.8 billion US dollars in 2018 thanks to the sale of Hambantota port to a Chinese firm.

The FDI in 2019 fell to 793 million US dollars and last year it recorded 548 million US dollars.

The policy consistency, difficulties in opening and doing business and exchange rate risks have been the key concerns of foreign investors.

The government interventions with sudden change in policies including expropriation have dented investor sentiment on Sri Lanka despite the end of long conflict in 2009. A

nalysts have said that ‘regime uncertainty’ which attenuates private sector profits including expropriation along with monetary instability from a Latin America style central bank and nationalism as key problems for both foreign investors and ordinary citizens to build a house or buy a car..

“Overall goal of the country is to get the policies right for this country to double the GDP in next 10 years.” They  said.“Covering investment climate and value propositions, ensuring and maintaining and retaining the value propositions, are absolutely necessary.”

So in terms of minimum inconsistencies I look forward to, in terms of policies.Many foreign investors who wanted to start businesses in the past have been compelled to choose some other peers because of long delays, alleged corruption, and bureaucratic bottlenecks which are yet to be addressed, they pointed out.

Shortage of Suzuki car mirrors reflects Sri Lanka’s growing economic crisis

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COLOMBO, Feb 18 (Reuters) – Car spare parts dealers in Sri Lanka’s main city of Colombo are receiving a steady stream of customers looking for what is fast becoming a prized commodity in the island nation – side mirrors for Suzuki’s compact Wagon R.

The scramble for the humble product highlights rising economic risks for the South Asian country as imports slump, foreign exchange reserves plummet and a potential sovereign default looms.

Suzuki’s boxy, five-seater vehicle is hugely popular in Sri Lanka, given its low running costs. With some 30,000 of the cars sold over the past four years in a nation that has relatively high road crash rates, replacement side mirrors are commonly sought in the spare parts shops scattered across the suburb of Nugegoda.

“Everyone is looking for Wagon R parts,” said Supun Deshak, a salesman at one store in the district where shop fronts are piled high with reconditioned spare parts.

The difficulty is that importers are struggling to source car parts because they are deemed non-essential imports under rules drawn up by the government to save dwindling foreign exchange reserves after the coronavirus pandemic hit.

Reserves have plummeted to $2.36 billion from $7.5 billion in January 2020. At the same time, the government faces a debt obligation of around $4 billion this year, and local banks are often unable to provide dollars that importers need.

“The biggest concern right now is the difficulty in importing spare parts for maintaining the existing fleet of vehicles,” said Yasendra Amerasinghe, chairman of the Ceylon Motor Traders Association (CMTA), which represents the country’s major vehicle importers.

The CMTA estimates imports of car spare parts will fall by around 30% in value terms this fiscal year, compared to pre-pandemic levels, primarily because of the foreign exchange shortages in the past few months.

Five auto dealers in Colombo told Reuters many spare parts were already in short supply, with only a trickle of new stock coming in from abroad, driving up local prices.

Exacerbating the problem are thieves looking to make a quick buck by stealing side mirrors of popular models like the Wagon R to sell in a thriving grey market, the dealers said.

The price of reconditioned Wagon R mirrors has surged by more than 35% from pre-pandemic levels to at least 30,000 Sri Lankan rupees ($148.5) per piece, the dealers said.

SECOND-HAND CAR PRICE SURGE

The economic crisis facing the country – its worst in a decade – has also triggered an escalation in second-hand vehicle prices.

Almost all car imports were banned in March 2020, followed by a stop on imports of other non-essential goods like airconditioners, refrigerators and video games consoles, as part of the government’s bid to deal with the financial strife.

That has pushed the cost of some second-hand vehicles up by more than 100%, the CMTA said. Sri Lanka does not mass produce any cars locally.

A used Wagon R currently costs around 5 million rupees ($24,752), well above the 2.8 million rupees a brand new vehicle cost in 2018, said CMTA Vice Chairman Virann De Zoysa.

That’s added further pressure on the spares market as many car owners look to cash in on the price jump but first try to spruce up their vehicle with replacement parts, said Musthaq Nazeer of Azka Auto Supply, a small shop packed with car mirrors and lights.

As global automotive supply chain disruptions add another layer to the problem, the CMTA said it has asked the government to classify car spare parts as an essential item, along with some food and medicine, to increase imports.

“Every distributor’s out of many, many key parts,” De Zoysa said. “We’re turning away customers on a daily basis.”

Register Reporting by Devjyot Ghoshal and Uditha Jayasinghe; editing by Jane Wardell

Port City and Cinnamon Life reveals investment insights

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With Colombo Port City and Cinnamon Life emerging as Sri Lanka’s most attractive investment opportunities in the property and leisure sectors, a webinar hosted recently by the Sri Lanka Canada Business Council (SLCBC) of the Ceylon Chamber of Commerce offered potential investors a unique opportunity to gain investor insights into the two projects.

Senior executives representing the two projects presented unique features, strategic growth plans and early-bird investment insights to an international audience at the webinar, furthering the SLCBC’s efforts to promote bilateral trade, investment and technology transfer between Sri Lanka and Canada by highlighting Sri Lanka’s emergence as a globally attractive investment destination.

Ms. Nabiha Mohamed – Manager of Strategy and Business Development of Port City, Colombo appraised participants of the opportunities in hospitality and tourism, ICT/BPM, maritime and logistics and financial services as FDI drivers, as well as the benefits of the Port City Act which would enhance the ease of doing business and prioritise FDIs.

Mr. Dileep Mudadeniya – Head of Corporate Affairs at John Keells Holdings and Vice President, Marketing of Cinnamon Hotels elaborated on the country’s biggest private-sector mixed-development investment project – Cinnamon Life – comprising what will be Sri Lanka’s largest hotel, as well as office and residential spaces.

With a focal point on boosting city tourism, while contributing to the development of peripheral sectors, the project has already attracted high levels of global investor interest, he added.

The Colombo Port City, is an exclusive, mixed development project in South East Asia, aimed at building a greener and smarter city. The project marks the beginning of an era of development in keeping with the Vision of “Building a World-Class City for South Asia.”

It has received 31 out of the 74 land plots technically completed by the Project Company to the Commission while releasing 6 plots out of the 31 on a 99-year lease basis, generating USD 200 million in sales revenue with a collective investment commitment of USD 600 million.

The port city has Commenced construction of the region’s first Downtown Duty-Free (DF) mall, for operation by two of the world’s leading DF operators, positioning the Colombo Port City as a regional shopping destination.

Measures have been taken to Incorporate Special Port City designated shell companies for smooth investor transfers and establishd designated bank licensing terms (allowing secure, unrestricted foreign currency accounts for investment in the Port City.

It has expedited Approval, Investor Agreement and Licensing processes for Potential Investors and Authorized Persons while completing special Port City e-business and Virtual City concept and submitted same for peer review to the Government of Sri Lanka.

Port City has Identified all 74 primary development plots as Businesses of Strategic Importance, entitled to the maximum benefits permissible under Section 52 of the CPCEC Act.

It has Initiated Single Window Facilitation discussions with relevant Government Departments, and provided as a pilot project full service (Port Health, Immigration, Customs, and International Ship and Port Facility Security Code) to Port City’s first super-yacht “Kalizma” arrival at the international marina on-site.

*Port City commission has partnered with a leading global technology company to deploy a state-of-the-art digital platform for all-inclusive investor engagements.

The absence of restrictive exchange controls, a preferential tax system with zero tax on personal income, remuneration in foreign currency (FC), and flexible long-term visas for foreign workers and their families coupled with the Sri Lankan lifestyle has generated significantly in the project from international investors.

The establishment of the Colombo International Financial Centre in February 2022 and associated exchanges will soon stimulate the flow of FC through the Port City, creating employment and adding substantial value to the broader economy over time.

Our current focus is on identifying and creating compelling value propositions in physical infrastructure development, banking and financial services, knowledge export and other key sectors, targeting reputed anchor investors in each.

The Commission strives for transparent and efficient processes in setting up businesses, condominium ownership, gaming and leisure activities and city management that will be globally competitive, and welcomes all input towards achieving its objectives.

China-Pakistan Honeymoon is Over, Imran Khan’s ‘Historic’ Visit to Beijing Cannot Hide That

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It is one of the unwritten rules of diplomacy that no foreign visit is ever labelled a failure, even when it is apparent that a visit was disastrous. Remember Agra Summit in 2001? The spin is always that it was a success (both the Vajpayee government and the Musharraf regime refused to acknowledge Agra as a disaster). Therefore, no surprise that the Pakistanis cannot stop crowing about the ‘historic’ visit of Prime Minister Imran Khan to Beijing. While the visit wasn’t a washout (and nothing embarrassing or unpleasant happened in Beijing), to call it ‘historic’ is a little over the top. Cut through the claptrap, and it is clear that there was very little either in substantive terms, or even in symbolic terms, that Imran Khan had to show for his three days in the Chinese capital.

The visit itself was really more about the leader of a vassal state standing in attendance while the Emperor inaugurates a grand spectacle. The main purpose behind Imran’s visit was that Pakistan was required to show solidarity with the Middle Kingdom which was hosting the Winter Olympics. With the West deciding to boycott the Games at the official level, China was forced to ask client states like Pakistan to attend the opening ceremony and ensure there was adequate international representation so that the Chinese emperor wouldn’t feel isolated or embarrassed. 

The Pakistanis wanted to use the opportunity to convert it into a state visit. The Chinese refused to entertain Pakistani requests. They also asked the Pakistanis to cut down Imran’s entourage to just about four ministers from the nearly dozen that the Pakistani Prime Minister was planning to take with him. Even the audience with the Emperor was granted after a lot of entreaties from the Pakistani side. There was some speculation in Pakistani media whether Xi would even meet Imran. In the end, however, both the Chinese premier and the president held ‘brief’ meetings with Imran. The Pakistanis had also sought a meeting with the Russian president who was also in Beijing at the same time. But the Russians did not make time for a bilateral between Putin and Imran.

On the eve of the visit, the Pakistani media had published stories about all the goodies that would be bestowed by Xi on Imran. There was talk of Russia and Kazakhstan giving a billion dollars each in addition to a $3-billion loan from China. The total money expected from China was around $11 billion – about $4 billion in rollover of earlier debt, about $4.5 billion in credit-swap arrangements (which is used less for funding trade with China – its original purpose – and more for funding balance of payments) and an additional $3 billion in other loans. But closer to the visit, the Pakistani officials debunked all these reports about the loans that were being expected. 

The Pakistanis wanted to use the opportunity to convert it into a state visit. The Chinese refused to entertain Pakistani requests. They also asked the Pakistanis to cut down Imran’s entourage to just about four ministers from the nearly dozen that the Pakistani Prime Minister was planning to take with him. Even the audience with the Emperor was granted after a lot of entreaties from the Pakistani side. There was some speculation in Pakistani media whether Xi would even meet Imran. In the end, however, both the Chinese premier and the president held ‘brief’ meetings with Imran. The Pakistanis had also sought a meeting with the Russian president who was also in Beijing at the same time. But the Russians did not make time for a bilateral between Putin and Imran.

On the eve of the visit, the Pakistani media had published stories about all the goodies that would be bestowed by Xi on Imran. There was talk of Russia and Kazakhstan giving a billion dollars each in addition to a $3-billion loan from China. The total money expected from China was around $11 billion – about $4 billion in rollover of earlier debt, about $4.5 billion in credit-swap arrangements (which is used less for funding trade with China – its original purpose – and more for funding balance of payments) and an additional $3 billion in other loans. But closer to the visit, the Pakistani officials debunked all these reports about the loans that were being expected.

It was clear that the goody bag Imran was expecting in return for paying obeisance in the court of Emperor Xi was going to be a lot lighter than what was being originally expected. From what is available in the public domain, the only real worthwhile thing to come from the visit was the ‘Framework Agreement on Industrial Cooperation under CPEC’ between China’s National Development and Reform Commission and Pakistan’s Board of Investment. This agreement is expected to provide the foundation for the second phase of the China-Pakistan Economic Corridor (CPEC). But bulk of the heavy lifting under this framework agreement has to be done by Pakistan. Given the past track record of the Pakistanis, this appears to be a very onerous task especially since none of the Special Economic Zones have so far delivered even the basic facilities to potential investors.

The Joint Statement was full of verbiage – the standard homilies being paid to the ‘all weather friendship’ between the two ‘Iron Brothers’, and the usual encomiums that Pakistanis heap on Xi’s visionary leadership, the various accomplishments of China and the Pakistani support to One China, and on Taiwan, Tibet, South China Sea, Xinjiang and Hong Kong, blah, blah blah. In return, the Chinese “reaffirmed their support for Pakistan in safeguarding its sovereignty, independence and security”. Nothing new here.

Similarly, despite the Pakistanis playing up the purported Chinese backing on Kashmir, the formulation in the Joint Statement was pretty standard, no different from what the Chinese have said so many times in the past: Kashmir issue was a dispute left from history, and should be properly and peacefully resolved based on the UN charter, relevant Security Council resolutions and bilateral agreements. China opposes any unilateral actions that complicate the situation. If anything, the ‘unilateral actions’ bit is something of a double-edged sword. While it cuts at India in the context of the constitutional reforms in Jammu and Kashmir on August 5, 2019, it also cuts at Pakistani plans to annex Pakistan-occupied Jammu and Kashmir (what they euphemistically call “Azad Jammu and Kashmir”) and the Pakistan-occupied Gilgit-Baltistan (PoGB) region.

Out of the six-page Joint Statement, around one page was about CPEC and how both sides were committed to the ambitious project that has been in a sort of go-slow mode ever since Imran Khan became Prime Minister in 2018. But notwithstanding all the hackneyed formulations on CPEC – “win-win enterprise”, “pivotal for regional prosperity” – and promises to re-energise it and “safeguard it from all threats and negative propaganda”, there are serious problems affecting the CPEC. The Pakistanis are already in default on some of the payments they owe the Chinese power plants set up under CPEC. Nearly seven years after they agreed to set up a revolving fund to ensure that there is no circular debt in Chinese power projects, this fund has still not been set up. There are also reports of Pakistan seeking renegotiations on the contracts they have signed with the Chinese. But the Chinese are not ready to cut any slack for their ‘sweeter than honey’ friends. In addition, one of the most crucial components of CPEC was the ML-1 rail line connecting Peshawar to Karachi. This project continues to hang in limbo because there is as yet no agreement on the financing. The Pakistanis have no money to pay their side of the $6-8 billion cost of this railway line.

As if this were not enough, there is the entire security question. The Pakistanis have raised a force of over 10,000 to guard the Chinese. But there have been regular attacks against the Chinese. While most of these attacks have so far been carried out by Baloch freedom fighters, there have also been instances of the Tehrik-e-Taliban Pakistan (TTP) militants targeting the Chinese. The attack on Chinese engineers and workers working on the Dasu Dam project has cost Pakistan heavy in terms of compensations demanded by the Chinese. The recent attacks in Noshki, Panjgur and Kech in Balochistan would have certainly set off alarm bells in China. The massive protests in Gwadar would also have spooked the Chinese. Add to this the unsettled conditions in Afghanistan, where the Taliban are showing no signs of curbing Islamist militants targeting both China and Pakistan. There are, therefore, serious doubts on how much private Chinese investment will come to Pakistan under the second phase of CPEC. If the second phase doesn’t take off, Pakistan will find it difficult, even impossible, to service the Chinese debt.

Clearly, the economic glue to the China-Pakistan relationship is coming unstuck. But it would be a mistake to reach the conclusion that China-Pakistan strategic relationship is getting fractured. There is absolutely no sign of that because neither side can afford a divorce, or even a separation. This is despite the fact that there are people in Pakistan who are now realising the perils and pitfalls of getting in too deep with the Chinese. But efforts to balance the relationship with China with the relationship with the West is easier said than done. For now, for Pakistan, China is the only game in town. The Chinese too are in no position to turn their back on Pakistan. Chances are they will use their leverages to extract whatever they can but they will not let things reach break point. Even so, the first signs of strains are starting to appear in the Chi-Pak relationship, and all the spin being put on Imran Khan’s visit to Beijing isn’t going to cover this up.

Sushant Sareen is Senior Fellow, Observer Research Foundation. The views expressed in this article are those of the author and do not represent the stand of this publication.

There is no legal impediment to doing the right thing – President instructs officials

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President Gotabhaya Rajapaksa has said that the law exists to curb corruption and irregularities and that the law is not an obstacle to doing the right thing.

The President made this observation while inspecting the Sustainable Energy Authority of Sri Lanka at Ananda Coomaraswamy Mawatha, Colombo 07 today (18).

The President emphasized that some groups use various tactics to prevent the right thing to be done and that there should be no room for them.

He said that only the national interest should be taken into consideration in the implementation of targeted projects, adding that delays in projects planned for the future would cause the country a huge setback in the eyes of the world for many years to come.

The President visited the Application Management, Research, Strategy and Energy Management divisions of the Energy Authority and inquired about its functions and planning.

The purpose of the President’s visit is to meet with officials of the Sustainable Energy Authority of Sri Lanka to explore the potential of renewable sources such as water, solar, wind and biomass to generate electricity.

The President pointed out the need to remove barriers to foreign investment in the country’s energy sector.

Minister of State Duminda Dissanayake was instructed to expedite the project of installing solar panels on the roofs of 100,000 houses and extend its benefits to low income earners as well.

Minister of State Duminda Dissanayake stated that steps will be taken to rectify the shortcomings in the Renewable Energy Act and to prepare the necessary amendments to the CEB Act and submit it to Parliament.

Power Cuts from today

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The Public Utilities Commission has given its approval for another power cut from today. 1 hour and 45 minutes of active power cuts in two stages.

The Chairman of the Public Utilities Commission Janaka Ratnayake stated that the power cut will last for an hour between 2.30 pm and 6.30 pm and will last for 45 minutes from 6.30 pm to 10 pm.

Due to the lack of fuel the national grid has lost about 500 megawatts of electricity.

However, a few days ago the Chairman of the Public Utilities Commission stated that there would be no power cuts within the next three months.