IN THE COURT OF APPEAL OF THE DEMOCRATIC SOCIALIST REPUBLIC OF SRI LANKA In the matter of an application for mandates in the nature of Writs of Mandamus and Certiorari under and in terms of Article 140 of the Constitution of the Democratic Socialist Republic of Sri Lanka. Case No: CA WRIT/820/2023

1. Executive Officers Union of the National Livestock Development Board (Reg. No. 9637)

No.342/7, Pasal Mawatha, Kalapaluwawa, Rajagiriya.

Petitioner seeking to Intervene -Vs-

1. All Ceylon Milk Industrial Employees’ Union

2. MILCO Technical Officers Association

3. Ceylon Workers’ Congress

4. United Progressive Workers’

Unity

5. Inter-Company Employees’ Union

6. Dairy Development and Extension Workers Union All of:

No.45, Nawaloka Road, Narahenpita, Colombo 05.

Petitioner – Respondents Mr. Mahinda Siriwardena Secretary to the Treasury, Ministry of Finance, Economic Stabilization and National Policies, The Treasury Secretariat, Colombo 01.

And 29 Others Respondent-Respondents Before: Hon. D.N. Samarakoon, J.

Counsel: Mr. Shivan Cooray with Mr. Damitha Surasena instructed by Mr.

Sanjeewa Kaluarachchi for the Petitioners.

Mr. J.M. Wijebandara for the Intervenient - Petitioner.

Mr. Vikum De Abrew, A.S.G., P.C., with Mr. Pulina Jayasuriya, S.C., for the 1^st and 3^rd Respondents.

Mr. Harsha Amarasekara, P.C., with Mr. Shehan Gunawardena and Mr. Dulangana Gamage instructed by MJ Associates for the 24^th Respondent.

Supported on: 30.01.2024 Written Submissions: 12.02.2024 by the Intervenient-Petitioners.

12.02.2024 by the 1^st to 3^rd Respondents.

12.02.2024 by the 24^th Respondent.

Decided on: 11.03.2024 D.N. Samarakoon, J The Question:

The complaint of the petitioners is that the alleged non compliance by the respondents with the alleged mandatory rules in P.35 “Special Guidelines for Divestiture of State Owned Enterprises”, (page 979 of Vol II of the docket) to which the learned counsel for the petitioners referred to as “The bible” for divestiture.

However, neither the petitioners nor the intervenients are against divestiture, alienation or sale followed by the Government of Sri Lanka as a matter of policy. The learned counsel for the petitioners initially brought to the notice of the Court, the document P. 35. These are the “Special Guidelines for Divestiture of State Owned Enterprises”. The relevant parts of it read, “1. Preamble The Government of Sri Lanka (GOSL) has decided to carry out reforms in the State-Owned Enterprises (SOE) sector, including the divesture of selected SOE’s, to enhance competitiveness, productivity, and efficiency across the economy and to assist in the country’s socio-economic development and fiscal consolidation efforts.

Due to the absence of a pre-approved process for the divesture of State- Owned Enterprises and the inapplicability of the existing guidelines for procurement of goods and services and PPPs (Public Private Partnerships)

for a divesture process, the need for development and approval of an appropriate special divesture process has arisen.

The divesture process will ensure GOSL’s Procurement principles of transparency, economy, efficiency, effectiveness and equity.

2.S0E’s for Divesture The Cabinet of Ministers (Cabinet) shall approve the SOE’s to be divested and direct the Implementing Agency (IA) to carry out such divesture 3.Divesture Divesture can take the form of disposing exiting shares or issuing of new shares of SOEs that are already established as, or converted into limited liability companies following due process. Divesture can constitute the sale of majority stake or a minority stake of a SOE. Other forms of divesture may also be considered on a case by case basis.

“Implementing Agency (IA)”

The Ministry of Finance, Economic Stabilization and National Policies (MoF) of the GOSL with the approval of the Cabinet, has "established a dedicated, IA the State Owned Enterprises Restructuring Unit (SOERU) with a mandate to carryout SOE sector reforms including divesture of selected SOE's”.

Hence the position of the petitioners