Features
100% Organic Agriculture: A costly experiment leading to National disaster
by Professor W.A.J.M. De Costa
Senior Professor and Chair of Crop Science, University of Peradeniya
Five months have elapsed since the government’s, in all probability the President’s, decision to ban inorganic fertiliser and synthetic agrochemicals to immediately transform Sri Lanka’s agriculture into totally ‘organic’ (or ‘green’ as the President referred to in his address at the SL Army’s 72nd Anniversary last week). At present, almost the entire agriculture sector is in crisis and the farming community is facing uncertainty at this crucial period of the year when the major crop-growing season is about to begin. Therefore, it is imperative that the President reconsider his decision to avert a national disaster. A recollection of the events leading to the President’s decision and its aftermath shows the extent of confusion that reigns, the muddled thinking of those in charge and the consequent mismanagement of this issue.
Background to the Decision
According to the President, the decision to ban the use of inorganic fertiliser and synthetic agrochemicals (which include pesticides and herbicides), was taken to safeguard peoples’ health and protect the environment. A close examination of scientific evidence, available in Sri Lanka (or worldwide), has failed to establish a cause-and-effect relationship between inorganic fertiliser use and any of the major human health issues prevalent in Sri Lanka (e.g. Chronic Kidney Disease of Unknown Aetiology). A similar conclusion can be made on synthetic agrochemicals as well. While excessive use of fertiliser and agrochemicals could lead to human health and environmental issues, available statistics on fertiliser and agrochemical use in different countries show that their use in Sri Lankan agriculture cannot be categorised as ‘excessive’. Therefore, it is clear that the decision to ‘go 100% organic overnight’ was based on ideology and wishful thinking rather than on solid, scientific evidence.
Was there a clear plan in place prior to taking the decision?
All actions of the government, since the implementation of the fertiliser and agrochemical ban, clearly demonstrates a complete absence of an alternative plan prior to the decision. A major decision, such as this, necessitated a comprehensive analysis of its costs in terms of potential reduction of crop yields, its economic and social implications on farmer livelihoods, national food supply and the entire social fabric. The perceived environmental and human health benefits should have been weighed against the risks of disrupting the food production and supply chain and the ensuing social instability.
Furthermore, there should have been a rational evaluation of the alternative strategies (e.g. local organic fertiliser production) with regard to their practical feasibility, time frames available, effectiveness and cost. However, it is abundantly clear that none of the above has taken place prior to the decision. Unfortunately, this is another example of a major policy decision being taken without a rational, scientifically-valid analysis of either the current status of the issue or possible consequences of the decision.
Stakeholder response in the immediate aftermath of the decision
The stakeholder responses to the decision have fallen in to three broad categories. A minority consisting of hard-core organic agriculture advocates and environmentalists voiced their approval, arguing that: (a) protection of human health and environment should take immediate precedence over any concerns about reduced crop yields and consequent shortages of food supplies; (b) a gradual transition to 100% organic agriculture would be difficult to implement because of farmer preference for inorganic fertiliser and agrochemicals when they are available. Hence, it was argued that their total ban was needed to implement organic agriculture. For example, the highly-influential Buddhist monk, Ven. Omalpe Sobhditha Thera, who is often a strong critic of the present regime, advised the government not to ‘take a step backwards’ on the fertiliser and agrochemical ban.
The second category of responses came from a majority of the general public, including a fair proportion of agriculturists, who accepted the decision to go ‘100% organic’ as a ‘good’ decision in principle, but one that should have been implemented over time and in phases. This group assumes that it is possible to fulfil the national food requirement by 100% organic agriculture at some future date (by which time the national population also will have increased further).
In contrast, a majority of agricultural scientists and practitioners who are knowledgeable about the science of crop production based on the principles of agronomy, soil science, plant nutrition and plant protection is of the opinion that 100% organic agriculture will not totally fulfil the country’s food requirement, either now or in the future, but can be practiced on a limited scale for niche markets (as is the case worldwide). The majority of farmers, in their conventional wisdom gained from several generations of farming, also comes to the same conclusion that national-scale crop production, in an economically-viable scale, is not possible with 100% organic agriculture. This constitutes the third category of stakeholder response. For example, the Faculty of Agriculture of the University of Peradeniya, which consists of more than 110 academics with expertise in different sub-disciplines and specialities of Agriculture, in a communication to the President and the Government, advised identification, based primarily on soil fertility status, of specific areas in Sri Lanka, for possible gradual introduction of the practices of organic agriculture to pilot-test the feasibility of transition to organic agriculture in the future. This position also underlies the fact that 100% organic agriculture across the whole country and its agriculture sector is not a viable option.
It is hoped that events in the five-month period since the decision, especially during the past month, will have shifted the responses of some stakeholders from category one to category two and from category two to category three.
What has the government done or tried to do since the implementation of the ban?
Local production of organic fertiliser
Everything the government has done or tried to do during the last five months shows its lack of preparation and inability to address the issues and challenges ensuing from the ban. The widely-held assumption among the advocates of the immediate and total ban of inorganic fertiliser was that crop nutrient requirements on a nation-wide scale could be supplied with organic fertiliser, prepared locally. There was a proliferation of programmes, mainly in local authorities and farms maintained by various government institutions including the military, to produce ‘compost’, an organic fertiliser with generally low and variable nutrient concentration, mainly from solid waste, animal manure and crop residue. Because of the rush to produce organic fertiliser on a scale sufficient to meet the national demand within a few months, none of the locally-produced organic fertiliser is tested for its quality in terms of the presence of required nutrients (e.g. nitrogen) and soil amendments (e.g. organic matter) or the absence of potential harmful agents. In this regard, the presence of heavy metals, such as Lead, Cadmium and Arsenic at levels above their tolerable thresholds is a distinct possibility because municipal solid waste, which is a common source material for compost production by local authorities, could contain material having the harmful heavy metals mentioned above.
Now, at the beginning of the Maha cropping season, which is the major season in Sri Lanka, it has become abundantly clear that local production capacity of organic fertiliser, irrespective of its quality, is inadequate to meet the national-scale demand for plant nutrients of crops to be grown.
Importation of organic fertiliser
The discussions that took place among officials of the Ministry of Agriculture, the Department of Agriculture and the advocates of organic agriculture revealed the fact that even those who strongly advocated and advised the President to implement the ban did not have an evidence-based figure on the per hectare organic fertiliser requirement to calculate its national requirement. As a result, the government’s position on importing organic fertiliser was shifting and evasive in the immediate aftermath of the ban, with the Cabinet Minister of Agriculture making contradictory statements, both in and outside Parliament. When the realisation finally dawned on the government officials that local organic fertiliser production will not be sufficient for the coming Maha season, there has been a bungled attempt to import a consignment of organic fertiliser from China, which is still continuing. This is despite the samples of this consignment twice-failing the tests for the presence of microorganisms.
The threat of introducing foreign microorganisms to Sri Lankan soils via imported organic fertiliser
At the very outset of the ban on inorganic fertiliser, independent experts had warned of this very significant danger of introducing foreign microorganisms to Sri Lankan soils, which could lead to a myriad of complex ecological processes with potential to disrupt the existing soil microbial community and set-off adverse environmental consequences. Unfortunately, this well-meant advice of experts fell on deaf ears. The importance of protecting the native microbial population in a soil cannot be over-emphasised as the microbes play a pivotal role in many soil processes which sustain and regenerate its fertility. One of the major critiques of the large-scale use of inorganic fertiliser has been their modification of the natural soil microbial communities.
Importation of liquid organic fertiliser
When the attempt to import solid organic fertiliser from China was stalled (may be temporarily as attempts to import it are still reported to be continuing behind the scenes), there are reports that organic fertiliser in liquid form, a nitrogen extract according to the Cabinet Minister of Agriculture, has been cleared for importation from India. A loophole in the existing regulations has enabled importation of liquid fertiliser which only requires to be free from ‘harmful’ microorganisms whereas solid organic fertiliser needs to be free from all microorganisms. The term ‘harmful’ microorganisms has no scientific validity in the broader context of environmental microbiology. This is because a microorganism that is categorised as ‘harmless’ at the time of its introduction to a foreign environment could easily become ‘harmful’ by fast proliferation in the absence of the ecological controls (e.g. natural enemies, environmental controls, etc.) that were present in its original environment to regulate its population within ‘harmless’ limits. Therefore, application of imported liquid organic fertilisers has the same level of threat to the local soil microbial population that the solid organic fertiliser poses.
It should be noted that if liquid nitrogen fertiliser is added to the soil, it is more likely to be leached down with rain or irrigation water and possibly pollute ground water than even the solid inorganic nitrogen fertiliser, thus nullifying a major argument for ‘going 100% organic immediately’. It is possible to apply the important liquid organic fertiliser to the plants as a ‘foliar application’. However, as in the soil, such an application poses a threat to the microbial communities that are present on plant leaves (called the phyllosphere microorganisms) by the foreign ‘harmless’ microorganisms, which are allowed to be applied along with the imported liquid fertiliser. A substantial amount of research done by Sri Lankan as well as foreign scientists has shown that phyllosphere microbes provide protection against a wide-range plant pathogens (i.e. disease-causing organisms such as fungi, bacteria, phytoplasma, viruses and viroids) by various mechanisms and thereby provides natural protection to agricultural crops from a range of plant diseases. A possible disruption of the phyllosphere microbial community by foliar application of imported liquid organic fertiliser containing foreign microbes which are perceived to be ‘harmless’ could potentially increase the risk of disease outbreaks in major crops which will be impossible to control, especially in the absence of synthetic agrochemicals.
Crucially, in a crop such as tea where leaf quality is of paramount importance, foliar application of imported organic fertiliser containing foreign ‘non-harmful’ microorganisms could alter the leaf biochemistry in such a way to disrupt the key characters of made tea such as its flavour and strength. The negative impact that this will have on the Sri Lankan tea industry, which in these COVID-19-affected times has been one of the few assured sources of valuable foreign exchange, will be incalculable and may well be irreversible as a market lost cannot be easily recovered.
Furthermore, foliar application of liquid organic fertiliser would not bring any benefit to the soil. Application of solid organic fertilisers, most of which are really ‘organic soil amendments’ rather than ‘organic fertilisers’, improves the soil physical properties which are important to sustain and regenerate soil fertility. Accordingly, apart from increasing the threat of crop disease incidence by introducing foreign microoganisms, promotion of foliar application of organic fertiliser will not contribute to the government’s perceived benefits of ‘going 100% organic with immediate effect’.
This bungled attempt to import organic fertiliser, in solid as well as liquid forms, clearly demonstrates the government’s muddled thinking in its rationale, planning and implementation of this grand scheme of becoming the first country to go 100% organic in its agriculture. It is telling that Ven. Omalpe Sobhitha Thero, who was a strong advocate of this scheme a few months ago, went on record saying that in view of the clear and present dangers of importing organic fertilisers, it would be better to go back to the inorganic fertilisers.
Intervention of the Chinese Embassy and undermining of DoA officers
The statement put out by the Embassy of the Peoples’ Republic of China, a friendly country providing an enormous amount of aid to Sri Lanka, casting doubt on the validity of scientific procedures adopted by the National Plant Quarantine Service (NPQS), which is part of the Department of Agriculture (DoA), in detecting the presence of microorganisms (i.e. bacteria belong to the genera Bacillus and Erwinia, which contain several bacterial species which are enormously harmful to agricultural crops, both in the field and after harvesting) in the samples of solid organic fertilizer to be imported from a Chinese manufacturer, raises several points of concern. Even though the Embassy claimed that a minimum period of six days is required for detection of the above microorganisms, Sri Lankan scientists with expertise in plant microbiology and plant pathology, pointed out that the microbiological and pathogenicity tests required to make scientifically-valid conclusions on the presence of the above organisms can be done within three days. It is notable that none of the higher authorities in the Ministry of Agriculture or the Department of Agriculture came out to defend the validity of the testing procedure and the professional integrity of research officers of the NPQS who carried it out.
Instead, conspiracy theories (e.g. contamination of samples by injecting microorganisms in to them) and blatant threats of investigation by the CID by the Cabinet Minister of Agriculture himself sought to intimidate DoA research officers and undermine their work. When the second set of samples, which was reportedly brought under Police protection, also failed the microbiological tests at the NPQS, there is now talk of bringing a third set of samples to be tested. It appears that the government is bent on somehow importing this consignment of organic fertilizer from China. One wonders whether the statement put out by the Chinese Embassy envisaging resolution of this issue for the ‘benefit’ of both parties is a ‘veiled threat’ or not.
In the broader context, this represents another instance where the Sri Lankan government and its institutions have failed to support its scientific and research community whose work, performed with enormous difficulty in severely under-resourced infrastructure, provides the framework and solid facts (instead of wishful thinking based on speculation) for effective policy formulation.
(To be continued)
by Dr Gotabhya Ranasinghe
Senior Consultant Cardiologist
National Hospital Sri Lanka
When we sought a meeting with Hon Dr. Ramesh Pathirana, Minister of Health, he graciously cleared his busy schedule to accommodate us. Renowned for his attentive listening and deep understanding, Minister Pathirana is dedicated to advancing the health sector. His openness and transparency exemplify the qualities of an exemplary politician and minister.
Dr. Palitha Mahipala, the current Health Secretary, demonstrates both commendable enthusiasm and unwavering support. This combination of attributes makes him a highly compatible colleague for the esteemed Minister of Health.
Our discussion centered on a project that has been in the works for the past 30 years, one that no other minister had managed to advance.
Minister Pathirana, however, recognized the project’s significance and its potential to revolutionize care for heart patients.
The project involves the construction of a state-of-the-art facility at the premises of the National Hospital Colombo. The project’s location within the premises of the National Hospital underscores its importance and relevance to the healthcare infrastructure of the nation.
This facility will include a cardiology building and a tertiary care center, equipped with the latest technology to handle and treat all types of heart-related conditions and surgeries.
Securing funding was a major milestone for this initiative. Minister Pathirana successfully obtained approval for a $40 billion loan from the Asian Development Bank. With the funding in place, the foundation stone is scheduled to be laid in September this year, and construction will begin in January 2025.
This project guarantees a consistent and uninterrupted supply of stents and related medications for heart patients. As a result, patients will have timely access to essential medical supplies during their treatment and recovery. By securing these critical resources, the project aims to enhance patient outcomes, minimize treatment delays, and maintain the highest standards of cardiac care.
Upon its fruition, this monumental building will serve as a beacon of hope and healing, symbolizing the unwavering dedication to improving patient outcomes and fostering a healthier society.We anticipate a future marked by significant progress and positive outcomes in Sri Lanka’s cardiovascular treatment landscape within the foreseeable timeframe.
by Fr. Emmanuel Fernando, OMI
Jesuit Fr. Aloysius Pieris (affectionately called Fr. Aloy) celebrated his 90th birthday on April 9, 2024 and I, as the editor of our Oblate Journal, THE MISSIONARY OBLATE had gone to press by that time. Immediately I decided to publish an article, appreciating the untiring selfless services he continues to offer for inter-Faith dialogue, the renewal of the Catholic Church, his concern for the poor and the suffering Sri Lankan masses and to me, the present writer.
It was in 1988, when I was appointed Director of the Oblate Scholastics at Ampitiya by the then Oblate Provincial Fr. Anselm Silva, that I came to know Fr. Aloy more closely. Knowing well his expertise in matters spiritual, theological, Indological and pastoral, and with the collaborative spirit of my companion-formators, our Oblate Scholastics were sent to Tulana, the Research and Encounter Centre, Kelaniya, of which he is the Founder-Director, for ‘exposure-programmes’ on matters spiritual, biblical, theological and pastoral. Some of these dimensions according to my view and that of my companion-formators, were not available at the National Seminary, Ampitiya.
Ever since that time, our Oblate formators/ accompaniers at the Oblate Scholasticate, Ampitiya , have continued to send our Oblate Scholastics to Tulana Centre for deepening their insights and convictions regarding matters needed to serve the people in today’s context. Fr. Aloy also had tried very enthusiastically with the Oblate team headed by Frs. Oswald Firth and Clement Waidyasekara to begin a Theologate, directed by the Religious Congregations in Sri Lanka, for the contextual formation/ accompaniment of their members. It should very well be a desired goal of the Leaders / Provincials of the Religious Congregations.
Besides being a formator/accompanier at the Oblate Scholasticate, I was entrusted also with the task of editing and publishing our Oblate journal, ‘The Missionary Oblate’. To maintain the quality of the journal I continue to depend on Fr. Aloy for his thought-provoking and stimulating articles on Biblical Spirituality, Biblical Theology and Ecclesiology. I am very grateful to him for his generous assistance. Of late, his writings on renewal of the Church, initiated by Pope St. John XX111 and continued by Pope Francis through the Synodal path, published in our Oblate journal, enable our readers to focus their attention also on the needed renewal in the Catholic Church in Sri Lanka. Fr. Aloy appreciated very much the Synodal path adopted by the Jesuit Pope Francis for the renewal of the Church, rooted very much on prayerful discernment. In my Religious and presbyteral life, Fr.Aloy continues to be my spiritual animator / guide and ongoing formator / acccompanier.
Fr. Aloysius Pieris, BA Hons (Lond), LPh (SHC, India), STL (PFT, Naples), PhD (SLU/VC), ThD (Tilburg), D.Ltt (KU), has been one of the eminent Asian theologians well recognized internationally and one who has lectured and held visiting chairs in many universities both in the West and in the East. Many members of Religious Congregations from Asian countries have benefited from his lectures and guidance in the East Asian Pastoral Institute (EAPI) in Manila, Philippines. He had been a Theologian consulted by the Federation of Asian Bishops’ Conferences for many years. During his professorship at the Gregorian University in Rome, he was called to be a member of a special group of advisers on other religions consulted by Pope Paul VI.
Fr. Aloy is the author of more than 30 books and well over 500 Research Papers. Some of his books and articles have been translated and published in several countries. Among those books, one can find the following: 1) The Genesis of an Asian Theology of Liberation (An Autobiographical Excursus on the Art of Theologising in Asia, 2) An Asian Theology of Liberation, 3) Providential Timeliness of Vatican 11 (a long-overdue halt to a scandalous millennium, 4) Give Vatican 11 a chance, 5) Leadership in the Church, 6) Relishing our faith in working for justice (Themes for study and discussion), 7) A Message meant mainly, not exclusively for Jesuits (Background information necessary for helping Francis renew the Church), 8) Lent in Lanka (Reflections and Resolutions, 9) Love meets wisdom (A Christian Experience of Buddhism, 10) Fire and Water 11) God’s Reign for God’s poor, 12) Our Unhiddden Agenda (How we Jesuits work, pray and form our men). He is also the Editor of two journals, Vagdevi, Journal of Religious Reflection and Dialogue, New Series.
Fr. Aloy has a BA in Pali and Sanskrit from the University of London and a Ph.D in Buddhist Philosophy from the University of Sri Lankan, Vidyodaya Campus. On Nov. 23, 2019, he was awarded the prestigious honorary Doctorate of Literature (D.Litt) by the Chancellor of the University of Kelaniya, the Most Venerable Welamitiyawe Dharmakirthi Sri Kusala Dhamma Thera.
Fr. Aloy continues to be a promoter of Gospel values and virtues. Justice as a constitutive dimension of love and social concern for the downtrodden masses are very much noted in his life and work. He had very much appreciated the commitment of the late Fr. Joseph (Joe) Fernando, the National Director of the Social and Economic Centre (SEDEC) for the poor.
In Sri Lanka, a few religious Congregations – the Good Shepherd Sisters, the Christian Brothers, the Marist Brothers and the Oblates – have invited him to animate their members especially during their Provincial Congresses, Chapters and International Conferences. The mainline Christian Churches also have sought his advice and followed his seminars. I, for one, regret very much, that the Sri Lankan authorities of the Catholic Church –today’s Hierarchy—- have not sought Fr.
Aloy’s expertise for the renewal of the Catholic Church in Sri Lanka and thus have not benefited from the immense store of wisdom and insight that he can offer to our local Church while the Sri Lankan bishops who governed the Catholic church in the immediate aftermath of the Second Vatican Council (Edmund Fernando OMI, Anthony de Saram, Leo Nanayakkara OSB, Frank Marcus Fernando, Paul Perera,) visited him and consulted him on many matters. Among the Tamil Bishops, Bishop Rayappu Joseph was keeping close contact with him and Bishop J. Deogupillai hosted him and his team visiting him after the horrible Black July massacre of Tamils.
Sri Lanka-Singapore Free Trade Agreement
By Gomi Senadhira
senadhiragomi@gmail.com
“You might tell fairy tales, but the progress of a country cannot be achieved through such narratives. A country cannot be developed by making false promises. The country moved backward because of the electoral promises made by political parties throughout time. We have witnessed that the ultimate result of this is the country becoming bankrupt. Unfortunately, many segments of the population have not come to realize this yet.” – President Ranil Wickremesinghe, 2024 Budget speech
Any Sri Lankan would agree with the above words of President Wickremesinghe on the false promises our politicians and officials make and the fairy tales they narrate which bankrupted this country. So, to understand this, let’s look at one such fairy tale with lots of false promises; Ranil Wickremesinghe’s greatest achievement in the area of international trade and investment promotion during the Yahapalana period, Sri Lanka-Singapore Free Trade Agreement (SLSFTA).
It is appropriate and timely to do it now as Finance Minister Wickremesinghe has just presented to parliament a bill on the National Policy on Economic Transformation which includes the establishment of an Office for International Trade and the Sri Lanka Institute of Economics and International Trade.
Was SLSFTA a “Cleverly negotiated Free Trade Agreement” as stated by the (former) Minister of Development Strategies and International Trade Malik Samarawickrama during the Parliamentary Debate on the SLSFTA in July 2018, or a colossal blunder covered up with lies, false promises, and fairy tales? After SLSFTA was signed there were a number of fairy tales published on this agreement by the Ministry of Development Strategies and International, Institute of Policy Studies, and others.
However, for this article, I would like to limit my comments to the speech by Minister Samarawickrama during the Parliamentary Debate, and the two most important areas in the agreement which were covered up with lies, fairy tales, and false promises, namely: revenue loss for Sri Lanka and Investment from Singapore. On the other important area, “Waste products dumping” I do not want to comment here as I have written extensively on the issue.
1. The revenue loss
During the Parliamentary Debate in July 2018, Minister Samarawickrama stated “…. let me reiterate that this FTA with Singapore has been very cleverly negotiated by us…. The liberalisation programme under this FTA has been carefully designed to have the least impact on domestic industry and revenue collection. We have included all revenue sensitive items in the negative list of items which will not be subject to removal of tariff. Therefore, 97.8% revenue from Customs duty is protected. Our tariff liberalisation will take place over a period of 12-15 years! In fact, the revenue earned through tariffs on goods imported from Singapore last year was Rs. 35 billion.
The revenue loss for over the next 15 years due to the FTA is only Rs. 733 million– which when annualised, on average, is just Rs. 51 million. That is just 0.14% per year! So anyone who claims the Singapore FTA causes revenue loss to the Government cannot do basic arithmetic! Mr. Speaker, in conclusion, I call on my fellow members of this House – don’t mislead the public with baseless criticism that is not grounded in facts. Don’t look at petty politics and use these issues for your own political survival.”
I was surprised to read the minister’s speech because an article published in January 2018 in “The Straits Times“, based on information released by the Singaporean Negotiators stated, “…. With the FTA, tariff savings for Singapore exports are estimated to hit $10 million annually“.
As the annual tariff savings (that is the revenue loss for Sri Lanka) calculated by the Singaporean Negotiators, Singaporean $ 10 million (Sri Lankan rupees 1,200 million in 2018) was way above the rupees’ 733 million revenue loss for 15 years estimated by the Sri Lankan negotiators, it was clear to any observer that one of the parties to the agreement had not done the basic arithmetic!
Six years later, according to a report published by “The Morning” newspaper, speaking at the Committee on Public Finance (COPF) on 7th May 2024, Mr Samarawickrama’s chief trade negotiator K.J. Weerasinghehad had admitted “…. that forecasted revenue loss for the Government of Sri Lanka through the Singapore FTA is Rs. 450 million in 2023 and Rs. 1.3 billion in 2024.”
If these numbers are correct, as tariff liberalisation under the SLSFTA has just started, we will pass Rs 2 billion very soon. Then, the question is how Sri Lanka’s trade negotiators made such a colossal blunder. Didn’t they do their basic arithmetic? If they didn’t know how to do basic arithmetic they should have at least done their basic readings. For example, the headline of the article published in The Straits Times in January 2018 was “Singapore, Sri Lanka sign FTA, annual savings of $10m expected”.
Anyway, as Sri Lanka’s chief negotiator reiterated at the COPF meeting that “…. since 99% of the tariffs in Singapore have zero rates of duty, Sri Lanka has agreed on 80% tariff liberalisation over a period of 15 years while expecting Singapore investments to address the imbalance in trade,” let’s turn towards investment.
Investment from Singapore
In July 2018, speaking during the Parliamentary Debate on the FTA this is what Minister Malik Samarawickrama stated on investment from Singapore, “Already, thanks to this FTA, in just the past two-and-a-half months since the agreement came into effect we have received a proposal from Singapore for investment amounting to $ 14.8 billion in an oil refinery for export of petroleum products. In addition, we have proposals for a steel manufacturing plant for exports ($ 1 billion investment), flour milling plant ($ 50 million), sugar refinery ($ 200 million). This adds up to more than $ 16.05 billion in the pipeline on these projects alone.
And all of these projects will create thousands of more jobs for our people. In principle approval has already been granted by the BOI and the investors are awaiting the release of land the environmental approvals to commence the project.
I request the Opposition and those with vested interests to change their narrow-minded thinking and join us to develop our country. We must always look at what is best for the whole community, not just the few who may oppose. We owe it to our people to courageously take decisions that will change their lives for the better.”
According to the media report I quoted earlier, speaking at the Committee on Public Finance (COPF) Chief Negotiator Weerasinghe has admitted that Sri Lanka was not happy with overall Singapore investments that have come in the past few years in return for the trade liberalisation under the Singapore-Sri Lanka Free Trade Agreement. He has added that between 2021 and 2023 the total investment from Singapore had been around $162 million!
What happened to those projects worth $16 billion negotiated, thanks to the SLSFTA, in just the two-and-a-half months after the agreement came into effect and approved by the BOI? I do not know about the steel manufacturing plant for exports ($ 1 billion investment), flour milling plant ($ 50 million) and sugar refinery ($ 200 million).
However, story of the multibillion-dollar investment in the Petroleum Refinery unfolded in a manner that would qualify it as the best fairy tale with false promises presented by our politicians and the officials, prior to 2019 elections.
Though many Sri Lankans got to know, through the media which repeatedly highlighted a plethora of issues surrounding the project and the questionable credentials of the Singaporean investor, the construction work on the Mirrijiwela Oil Refinery along with the cement factory began on the24th of March 2019 with a bang and Minister Ranil Wickremesinghe and his ministers along with the foreign and local dignitaries laid the foundation stones.
That was few months before the 2019 Presidential elections. Inaugurating the construction work Prime Minister Ranil Wickremesinghe said the projects will create thousands of job opportunities in the area and surrounding districts.
The oil refinery, which was to be built over 200 acres of land, with the capacity to refine 200,000 barrels of crude oil per day, was to generate US$7 billion of exports and create 1,500 direct and 3,000 indirect jobs. The construction of the refinery was to be completed in 44 months. Four years later, in August 2023 the Cabinet of Ministers approved the proposal presented by President Ranil Wickremesinghe to cancel the agreement with the investors of the refinery as the project has not been implemented! Can they explain to the country how much money was wasted to produce that fairy tale?
It is obvious that the President, ministers, and officials had made huge blunders and had deliberately misled the public and the parliament on the revenue loss and potential investment from SLSFTA with fairy tales and false promises.
As the president himself said, a country cannot be developed by making false promises or with fairy tales and these false promises and fairy tales had bankrupted the country. “Unfortunately, many segments of the population have not come to realize this yet”.
(The writer, a specialist and an activist on trade and development issues . )
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