UNP says Sheraton deal not gazetted

Friday, 2 December 2011 00:00 - - {{hitsCtrl.values.hits}}

The main Opposition UNP alleged yesterday that the Sheraton deal hasn’t been gazetted, hence the Government was breaking the law.

In response to Minister Keheliya Rambukwella announcing yesterday that the Cabinet has approved the transfer of the former CATIC land at Galle Face to Sheraton on the same terms and conditions, UNP MP Dr. Harsha de Silva said that it could be safely assumed that Sheraton would have been offered long-term tax exemptions and other benefits under the Strategic Development Projects Act.

“While we are not opposed in principle to investments from recognised parties, it must be reiterated that the Government has once again violated the law in conducting this transaction,” de Silva said.

According to him, the Strategic Development Projects Act clearly states that prior to Cabinet approval being granted for strategic projects with wide-ranging tax incentives the proposed exemptions must be published in the Gazette.

This is to provide the public with an opportunity to air any concerns they may have with regard to the proposed project. Only after the lapse of 30 days from the publication of such a Gazette can Cabinet approval be sought by the minister in charge of investments.

“Assuming Cabinet approval is granted, a second Gazette must be published with the specific incentives within six weeks of such approval. Thereafter the proposal must be placed in Parliament within three months for its approval,” the UNP MP said.

He alleged that the Government had not published the required Gazette and thus was in violation of the law. “While the Government may argue that a Gazette is not necessary purely for the lease of land, the spirit of the agreement that the Government will enter into with Sheraton, if it has not already done so in stealth, will certainly be to offer long-term tax exemptions in return for the investment on the leased land. There is no reason for Sheraton to lease out the land other than to build a hotel,” Dr. de Silva added.

“In a country in which the Government can pass ad hominem legislation with no regard for the basic process of legislating, as we witnessed only weeks ago, what difference does it make if existing laws and procedures are blatantly violated? The public is also now fully aware of how the tyranny of the majority guarantees the passage of any legislation – even if it has to be done by physically assaulting the members of opposition. No Government can act with such impunity forever,” the UNP said in a statement.