Prime Minister Ranil Wickremesinghe, who heads the right-wing National Party (UNP), which has a majority in Parliament, is responsible for renegotiating SOFA. On July 10, Wickremesinghe told parliament that the proposed SOFA “is not a military pact, but only an agreement that defines the rights and privileges enjoyed by the U.S. military if they were in the country,” according to Reuters. “SOFA is a peace document,” he said. Mr Wickremesinghe assured Parliament that he would not support any agreement threatening Sri Lanka`s sovereignty. However, as Samaranayake points out, proposed defence pacts with the United States tend to be controversial in the first place. That is what happened, for example, with India, when the United States followed logistics and communication pacts. “New Delhi has finally concluded these agreements,” she notes. Sri Lanka ILO uses the US model to resolve disputes between an investor and the host Member State. It provides that an investment dispute between one party and a national or a company of the other party, including a dispute over an investment authorization or the interpretation of an investment agreement, may be subject to international arbitration six months after the dispute. The depletion of local remedies is not necessary. Arbitration procedures are those of the International Centre for the Settlement of Investment Disputes (“ICSID”). 1.
For the purposes of this article, an investment dispute is defined as being in dispute, which concerns: (a) the interpretation or application of an investment agreement between one party and a national or company of the other party; (b) the interpretation or application of an investment authorization issued by the foreign investment authority of a contracting party to these nations or companies; or (c) an alleged violation of a right conferred or created by this contract with respect to an investment. (b) the binding obligations of this party under a multilateral international agreement under the General Agreement on Tariffs and Trade, which will enter into force after the signing of this agreement. Given the strong opposition to it, it may seem bleak for Sri Lanka and the United States to reach an agreement on SOFA.