Mishandling of economic crisis in SL Rajapaksas at fault

• Respondents were ordered to pay a legal cost of Rs.150,000 to each petitioner
• SC held that respondents have breached  fundamental rights to equal protection of the law
• CJ considered it not  appropriate to issue an order directing the respondents to pay  compensation as petitioners have not claimed in their  petitions

By Lakmal Sooriyagoda   

Delivering its judgment regarding several fundamental rights petitions filed against those responsible for financial irregularities and mismanagement of the economy, the Supreme Court yesterday held that several respondents including former President Gotabaya Rajapaksa, former Prime Minister Mahinda Rajapaksa, former Finance Minister Basil Rajapaksa, former CBSL Governor Ajith Nivard Cabraal and the Monetary Board are responsible for mishandling the economic crisis in the country.  

With Justice Buveneka Aluvihare, Justice Vijith Malalgoda and Justice Murdu Fernando agreeing, Chief Justice Jayantha Jayasuriya in his judgment held that the action, omission, decision and conduct of the respondents have contributed to the economic crisis.  

Accordingly, in a majority decision of Supreme Court, the five-judge-bench held that respondents including former President Gotabaya Rajapaksa, former Prime Minister Mahinda Rajapaksa, former Finance Minister Basil Rajapaksa, Monetary Board, former CBSL Governor Ajith Nivard Cabraal, former CBSL Governor W.D. Lakshman, former Treasury Secretary S.R. Atygalle, former President’s Secretary P.B. Jayasundara, Saman Kumarasinghe have violated public trust. The Supreme Court further held that the respondents have breached the fundamental rights to equal protection of the law in terms of Article 12(1) of the constitution. The respondents were ordered to pay a legal cost of Rs.150,000 to each petitioner.   
Three university academics Dr. Athulasiri Kumara Samarakoon, Dr. Mahim Mendis, Soosaiappu Neavis Morais, Sri Lankan swimmer and coach Julian Boling, former Chairman of the Ceylon Chamber of Commerce Chandra Jayaratne, Transparency International and Jehan Canaga Retna filed these petitions urging authorities to take legal action against the main culprits responsible for the current economic crisis.  
Chief Justice Jayantha Jayasuriya observed that it would not be appropriate to issue an order directing the respondents to pay compensation to the petitioners since they have not claimed in their petitions. Therefore, the Supreme Court did not issue an order for compensation. However, the Supreme Court ordered that each petitioner would be entitled to be paid a legal cost of Rs.150,000 by the respondents.   

The Supreme Court held that Public trust is an inherent responsibility bestowed on all officers who exercise powers which emanate from the sovereignty of the people.   

“Therefore, as public officers the respondents are obliged at all times to act in a manner which honours the trust bestowed on them. We are of the view that the action, omission decision and conduct has contributed to the economic crisis, the Chief Justice held.   

Justice Priyantha Jayawardena delivered a separate judgment dismissing the two petitions citing that the respondents have not established the violation of Fundamental rights.   

The Chief Justice announced that the court was not inclined to uphold any preliminary objections raised by respondents. The main focus of the Supreme Court was on the economic situation between November 2019 and April 2022. The petitioners complained that Rs.681 billion tax relief given for businessmen during former President Gotabaya Rajapaksa’s regime mainly contributed to the country’s economic crisis. The petitioners further alleged that economic mismanagement in pegging of the Sri Lankan Rupees against the US Dollar, the delay in the IMF negotiation at the right time and matters relating to the settlement of International Sovereign Bonds to the value of US$ 500 million on January 18, 2022 utilising foreign reserves were the main areas the respondents should be held responsible.   

Upul Jayasuriya PC, Chandaka Jayasundera PC, Vishwaka Peiris and S.A. Beiling appeared for the petitioners. Romesh de Silva PC appeared for the Monetary Board. Gamini Marapona PC with Navin Marapona PC appeared for Basil Rajapaksa and Mahinda Rajapaksa. Shavindra Fernando PC, Anura Meddegoda PC, Nihal Jayawardena PC, Manohara de Silva appeared for several other respondents. Additional Solicitor General Nerin Pulle appeared for the Attorney General.