Features
Sorry state of rubber industry in SL
By Dr. L. M. K. Tillekeratne
Former Director RRI, UNIDO expert in Rubber Processing
Rubber plantation was established in Sri Lanka over the past nearly 10 decades for extracting latex for the manufacture of raw rubber grades namely Ribbed Smoked Sheets (RSS), latex crepe, technically specified rubber (TSR), the starting materials for the manufacture of moulded products such as tyres. Rubber latex in concentrated form is used to manufacture foam rubber and dipped products like household and medical gloves, condoms and balloons. With the spread of diseases such as AIDS, the demand for the natural rubber based medical gloves and condoms started rising rapidly in the mid-1980s.
Due to COVID-19, which is fast spreading all over the world, the demand for medical gloves used for examining patients and household gloves used in supermarkets, etc., is growing at an unexpected high rate, thereby increasing the demand for concentrated rubber latex. This trend is expected to rise further at least for the next two to three years until an effective vaccine is found for COVID-19; the developed nations like Japan, the US and some European countries have already decided to live with the Covid-19 next couple of years until an effective vaccine is developed. Hence if the rubber plantations in the country start following proven agro-management practices introduced by the RRI, without engaging in extracting latex over in excess of what is biologically available trees by using harmful extraction techniques such as stimulation, they will be able to reap benefits of this rising demand for latex. However, if trees are exploited above 100% efficiency level, the way some of the plantations are doing today, the day the rubber industry disappears from this country is not far off.
The main reason for some of the rubber estates finding it difficult to remain viable today is due to the drop in productivity in kg/ha/yr by over 50% during the last half decade to about 770 Kg/ha/yr, and it is declining further due to the adoption of incorrect agro management techniques totally rejected by the RRI. The countrywide productivity in 2013 was over 1,200 Kg/ha/yr and in 2018 it has dropped down to 774 kg/ha/yr purely due to bad management; this is not due to infertility of the soil or due to poor weather conditions.
It should be mentioned here with appreciation that some rubber plantation companies earn high profits purely as they followthe RRI recommended agro-management practices. They have also been able to show that the rain guards introduced by the RRI to minimise crop loss caused by rain interference on tapping have helped record an annual crop increase of over 30%. Now they are engaged in low frequency d4 or d5 tapping trials on their own, thereby vastly reducing the tapper shortage in their estates.
Harvesting of latex from the rubber tree is done by tapping the bark using tapping intensities recommended by the RRI. The S2d2 tapping system adopted in most part of the island is called the tapping system of 100% efficiency. This 100% efficient tapping technique is capable of giving biologically possible highest yield from a rubber tree over a period of over 24years. If attempts are made to over-extract latex over and above this recommendation, with the help of rash techniques tapping, panels dry up (TPD) thereby making the tree worthless. Further, due to the high intensity tapping the productive period of the tree too is reduced. Hence, in order to obtain satisfactory returns on the investment it is essential to adopt the RRI-approved techniques.
But, it is very sad to note that in most of the RPCC-managed estates, unwarranted bad extraction techniques to extract more latex from the trees (far above what is biologically possible to extract) is practiced and hence today in most of the estates the percentage of Tapping Panel Dried trees (TPD) present is over 50%. If proper agro practices are followed, this percentage should be below10%. In other words, more than half the healthy trees in such estates are without a bark to yield even a drop of latex. Virtually they are like culled cows in a dairy farm. Unfortunately, when you travel on the Colombo Ratnapura road or on the Colombo Matara highway, right along the road you see rubber estates with healthy trees with a big canopy. But, how many of you are aware that most of them are useless trees not yielding any latex due to the above reason.
There has been a proposal of growing other crops on rubber estates. Then what will happen to the rubber products industry earning over US $ 1.25 Bn annually? If such estates are used for other crops which demand more inputs and better care are also subjected to poor agro-management, can they earn profits? Then, what will be the damage caused to the environment?
If the RPCC-managed estates are economically unviable, it means they have not been properly managed; important inputs like fertilizer have been curtailed and exploitation has been intensified by totally ignoring the recommendations of the RRI to achieve short term high yields, thereby lowering productivity to unexpectedly low uneconomical levels. They have been trapped in a vicious circle. Therefore, action must be taken as early as possible to prevent the rubber industry from disappearing from our soil. If not, over 250,000 unskilled workers engaged in estates and over40 to 50,000 semi-skilled and skilled workers employed in the rubber products industry will have to find employment elsewhere.
Another factor that has contributed to this situation is the communication gap between the RRI scientists and the RPCC-managed plantation. The valuable rubber bulletin published twice a year compiling all research findings of scientists and economic analysis of the industry done by reputed economists both local and overseas has not been published since mid-2018. Regional meetings conducted to discuss new developments in the industry and on the plantation and the problems faced by the estate managers in their management activities have not been conducted for years after setting up of the plantation rehabilitation and monitoring committee by the Ministry of Plantation Industries. As a result, not only the RPCC but also the Rubber Development Department officers have been doing things the way they want without heeding the RRI recommendations. Scientific committee meetings conducted by the RRI for planters and the RDD officers have not been held for a long time. A case in point is the present clone balance of rubber planted in the country. Without heeding the pressing need to maintain a uniform plantation of five top quality group 1 clones namely RRIC 100, 102, 121 and Pb 216 and 28/59 covering 20% of the total extent from each, replanting has been done with whatever the clone that is easy to access in their nurseries. This recommendation was made by all the IRRDB member countries in 1986 to avoid mass destruction of the entire rubber plantation or a very high percentage of the total rubber extent in the country in case of a disease pandemic effecting one of the clones starts to spread in the plantation like what happened in mid-1980s to the clone RRIC 103.
A policy decision was taken by the MPI in 1995 to eliminate the low yielding clone Pb 86 from the plantation by destroying even the bud wood nurseries controlled by the RDD and RPCC. According to statistics published following a countrywide survey carried out by the RRI in 2012, even 15 years after banning the propagation of Pb 86 clone, there is still 29% Pb 86 on plantations. This means neither the RPCC nor the RDD has followed the ruling given by the MPI to eliminate this low yielder from the plantation. This factor also has contributed to the declining yield of the rubber plantation in the country. Further, the RRIC 121 population has reached 33% of the total extent, which is slightly more than the recommended norm. Hence, a decision has been taken by the MPI on the advice of the RRI to reintroduce RRIC 100 clone to the plantation and also to discourage planting 121 for some time.
According to the survey carried out by the RRI in 2020, the clone population in the country is in a worse situation now. According to this survey results RRIC 121 population in the whole country which includes SHH has risen to unexpectedly high level of 73% of the total extent while RRIC 100 population is stagnating at a low level of only 8%. Also, the group 1 recommended RRIC 102 clone population in the country is insignificant. A joint effort should be made by the RRI with RPCC and the RDD, to bring the clone balance in the country to a satisfactory level. If a pathogen affecting the clone RRIC 102 enters the Sri Lankan plantations, we may have to make a greater effort than that by the government to control COVID-19, to save the rubber estates.
Therefore, if the new government is to develop the rubber industry, it must first ensure a close interaction among the RRI and the RPCC, the RDD regional offices and resume inspections by the RRI officers in RPCC estates without further delay to identify the wrong procedures followed by them and advise them to adopt remedial measures. RRI must take immediate action to publish its bulletin regularly as in the past to educate farmers on new research developments. One must keep in mind that the damage done by the RPCC by following unacceptable exploitation techniques to draw latex from the trees far above what is biologically available, must be stopped immediately for the sustainability of this valuable industry highly beneficial to the economy of Sri Lanka and also equally to the environment of the country.
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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