Features
LESSONS FROM LEBANON
I was watching midday BBC World News on August 4 when the visuals of an explosion were flashed on screen as ‘breaking news’. It was repeated several times with black billowing clouds suddenly engulfed and obliterated by a mushroom shaped huge expanse of white smoke with flames below rising higher. The noise was thunderous. It was the horrendous explosion in Beirut on 3 August.
Then I read the article in the New York Times the next day by Faysal Itani, deputy director at the Center for Global Policy and adjunct professor of Middle East politics at Georgetown University. He is a Lebanese who worked in the country before migrating to the US. In the article he lays out “the incompetence, negligence and sheer bad luck” that allowed this disaster to happen. Reading it, parallels to Sri Lanka were apparent to me. I quote parts of his article below. Within the quotes you will find interpolations in parentheses reminding you of similar situations/incidents in our country. I point out similarities with fear invading me and hope they will be reduced if not obliterated with a powerful government newly installed. Obvious differences exist, of course, which I do not mention.
Similar to Sri Lanka, Lebanon is a developing emerging country with its economy mainly service-based on tourism, and imports outweighing exports. Oil and gas exploration were intensified in 2020. Very importantly a significant similarity exists that both countries have recently emerged from internal strife – our 28-year civil war and Lebanon’s multi-faceted civil strife from 1975 to 1990. This weakened institutions and the rule of law in both countries, compounded by simmering racial and religious tensions. Lebanon’s geopolitical position causes it to face more problems than us.
Consequences of explosion and
other disasters
Itani asks the pertinent question in the title of his article: “Why Did Lebanon Let a Bomb-in-Waiting Sit in a Warehouse for Six Years?” He replies his own question: “Yesterday’s explosion, which destroyed Beirut’s port, much of the city and countless lives, was the result of business as usual. Ports are prime real estate for political, criminal and militia factions. Multiple security agencies with different levels of competence and different political allegiances control various aspects of their operations.” (Parallel 1: so true about SL. Within the last eight years since the Mahinda Rajapaksa Magampura Port or simply – the Hambantota Harbour – was built, immense problems of debt servicing to the Chinese for the massive construction with no ships docking, resulted in leasing it out by the Yahapalanaya government. This was heavily criticized by the Rajapaksa faction. Now- what? Even the need to lease out parts of the Colombo Port are being fiercely protested. Recently a strong protest was mounted by port workers. We have hopes that under President Gotabaya Rajapaksa some sensible arrangements will ensue).
Writes Itani: “By all appearances the port disaster did not involve the usual suspects — Hezbollah, Israel, jihadist terrorism or the government of neighboring Syria. The truth seems to be both duller and more disturbing: decades of rot at every level of Lebanon’s institutions.” (Parallel 2: loss of confidence in our governments and slow destruction of systems such as rule of law. A much lauded attempt of correction of course was attempted with much approval and cheering in 2015 which failed abysmally, mostly due to clash of leading personalities. Corruption at all levels increased through the years. We too suffered jihadist terrorism last year).
“So far, Lebanese officials are in agreement about what happened, though it’s likely that more than one ‘official’ account will emerge. After all, this is Lebanon, a country deeply divided by politics, religion and history. But here is what we know as of now: some 2,750 tons of ammonium nitrate unloaded from a disabled vessel in 2014 had been stored in a port warehouse. Then yesterday, a welding accident ignited nearby fireworks — which caused the ammonium nitrate to explode” (Parallel 3: Loads of imported garbage lie in the port of Colombo and elsewhere expecting ‘return to sending country’. No action so far! Waiting for a blowup or polluting dispersal in the sea? Also that comment on being deeply divided is so true of our population by politics, race and religion, with power grabbed by the yellow robed and the latest hoisting of the idea of Sinhala Buddhist supremacy).
Further itemization of mismanagement in Lebanon by Itani goes thus: “And recruitment in the civilian bureaucracy is dictated by political or sectarian quotas. There is a pervasive culture of negligence, petty corruption and blame-shifting endemic to the Lebanese bureaucracy, all overseen by a political class defined by its incompetence and contempt for the public good.” (Parallel 4: Our public service is bursting at the seams due to recruitment of persons promoted by politicians. Hardly manageable in salary payments. Corruption, mismanagement, interference by politicians all across Sri Lankan systems, is pandemic. These are huge blots in the nation’s fabric, all too well seen but not remedied. Hope springs in optimistic hearts that the new government will curb its members and they will be made to work hard for the good of the country which is in a dire state due to previous political pests).
“The catastrophe, while exceptionally severe, is the result of business as usual in Lebanon.” (Parallel 5: The suicide bomb blasts of Easter Sunday 2019 by Muslim fanatics seems to be a result of ‘business as usual’ – going easy, taking things trivially, infighting and then passing the buck of blame. In spite of expressed apprehension and reliable warning, the non-cooperation of the then President and PM and thus lack of alertness on the part of others, innocents were killed; though it was preventable. Irresponsibility was starkly evident. President Gotabaya has sought help from the armed forces and given them high posts in the bureaucracy. Vice and terror are being eradicated. We hope it ends in security for all).
Itani also mentions disasters caused by failures in public services and a garbage crisis and environmental catastrophes. (Here is Parallel 6: a severe garbage crisis opened the eyes of Sri Lankans to haphazard dumping of solid waste when a mountain of dumped rubbish descended to cause many deaths in Meetotamulla. The garbage crisis is not solved as yet. Marine pollution goes on apace. It is mentioned that the Cabinet will be small – 26 to 30. That would surely have a single minister in charge of environmental issues and of forests, wild life, nature reserves et al so that both elephants and villagers could be spared death an injury and deforestation stemmed. The much prevalent passing the buck and top bureaucrats not making decisions MUST cease forthwith)
In Lebanon “The consequences of yesterday’s explosion will be even more serious than the immediate casualties and property damage. The main grain silo, which holds 85% of the country’s cereals, was destroyed. Even more, the port will no longer be able to receive goods. Lebanon imports 80% of what it consumes, including 90% of its staple wheat. (Our case is much less dire; we are to an extent self sufficient in rice and many imports are being banned – very good! But we have a fertilizer problem fermenting; agriculture and our farmers are not given due government attention nor are their grievances looked into and alleviation attempted. We hope, as promised, the new government will redress the issues faced by agriculture in this land and farmers helped).
Faysal Itani ends his article querying: “Will there be a revolution? An uprising of anger? … Yet there has never been more urgency for reform and accountability, beyond the likely scapegoating of mid-level officials. It is difficult to imagine such a concerted, sustained national movement because it has never materialized. But hunger and a collapse in health care may change that. Yesterday’s explosion made clear that Lebanon is no longer a country where decent people can live secure and fulfilling lives.” The protests have already ignited in Lebanon. (Problem 7 with solution: Very relevant. Our country needs severe improvement; a creasing out of corruption and nepotism; a vast reduction in the perception of unlimited power believed in by politicians and Cabinet Ministers that has been exhibited in previous years. We have examples to look back to of the immediate years after independence when politicians acted as they should. Our hope is that the President, who is a disciplined person, will curb Ministers. The Prime Minister needs to be just and controlling too. Government servants must work honestly and there must not be undue influence on them by politicians. We are too tame a population to mass protest or rise up all together in anger. We earnestly hope that a just government will manage the country well and corruption will be wiped out. It can be done, and must be. All officials and politicians must work for the country and its people, not for a Party, family or themselves.
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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