The Hon. Faiszer Musthapha, PC

¶ 01 Hon. Presiding Member, thank you for the opportunity to speak at the Committee Stage discussion on the Votes of the Ministry of Trade, Commerce, Food Security and Co-operative Development.

¶ 02 We cannot resolve our country’s issues or move forward unless we move away from debt and bring in FDI. Your Ministry is the backbone of the economy. We must attract FDIs and develop industries. Our closest neighbour, India, is the most populous country; we have an FTA with India. We must establish industrial zones and provide incentives. Successive governments assumed investors would simply come, but our energy and labour costs are high. We need a mechanism to incentivize industry establishment in Sri Lanka.

¶ 03 A vital enabler of investment and trade is a vibrant Judiciary. Investors want to know, in a dispute with a regulator or local partner, how issues will be resolved. A District Court case can take 20 years. We set up a Commercial High Court with a single appeal, reducing the path, yet a decree may still take around 10 years. We must revamp commercial justice to provide investor confidence.

¶ 04 Arbitration has helped attract investors, but issues persist: no provision for interim relief in the Arbitration Act, lengthy proceedings, and high costs. Many lease agreements contain arbitration clauses, barring small parties from going to court on facts and pushing them to costly arbitration they cannot navigate. In courts, small parties have better procedural protections.

¶ 05 I urge you to discuss with the Ministry of Justice and National Integration amendments to the Arbitration Act to allow interim relief and to set a ceiling so small-value lease or hire-purchase disputes below a threshold are not referred to arbitration. Without such reforms, investor promotion will underperform and foreign investors “played out” by local partners will have little recourse.

¶ 06 Further, there are over 15 unfilled High Court vacancies since April last year. If the Judiciary is not fully staffed, law’s delays worsen and investors are deterred. The Judicial Service Commission should recommend names to the President to fill these posts. Judges seek progression—from Magistrate’s Court to District Court, High Court, Court of Appeal, Supreme Court—and there is an age limit of 60 years for High Court service. Appointments must be expedited.

¶ 07 Please convey these concerns to the Minister of Justice and ensure these judicial appointments are made without delay to enable a vibrant Judiciary that can underpin investment.

¶ 08 Thank you.