Features
The absent-minded Opposition
By Uditha Devapriya
At a time when everyone is taking a stand on everything, abstentions only show that you don’t want to take a stand on anything. The SJB, the country’s main Opposition, chose to abstain from the vote on the IMF deal. Dayan Jayatilleka’s take on the decision, which SJB MPs justify on the grounds that the deal was not presented properly to parliament, is by far the best: by abstaining, the SJB copped out, and by copping out, it essentially deprived itself of the best opportunity since May 9, 2022, to consolidate its position in parliament. That it did not do so, that it chose to duck, only showed how divided it is.
Certain SJB MPs claim to be opposed to the process through which the IMF deal has been finalised. But, as Jayatilleka clearly points out, there was, and is, a direct link between IMF conditionalities and the authoritarian nature of the government. The latter seems hell-bent on imposing austerity at any price, and the electorate are, if somewhat mutedly, reacting against that tendency. Had the SJB taken a stand, they could have conveyed a message to voters: they could have indicated that they were of one mind regarding the IMF deal, that they could only support it if it had been linked to a verifiable promise of holding elections later this year or early next. By abstaining, they merely betrayed their inability to interpret these developments properly, to come to a consensus on them.
Other parties took a much clearer stand. The JVP, the Freedom People’s Congress, and the Uttara Lanka Sabhagaya all voted against it. Only the SLPP and the UNP voted in favour. Most minority parties, perhaps signalling their lack of commitment to anything which does not directly impinge on minority issues, kept away. It is possible that some ruling party MPs are trying to insulate themselves from the backlash that will accompany the implementation of IMF reforms. The SLPP, in that sense, appeared slightly divided, with Sarath Weerasekera and Namal Rajapaksa abstaining. Against such a backdrop, it is significant to recall that, in the 1990s, when the then government passed one reform deal after another, several ruling party MPs chose to abstain as well. Among them was Mahinda Rajapaksa.
Of course, with all due respect to Rajapaksa père and fils, there is a difference between a ruling party MP abstaining and an Opposition party abstaining from a crucial vote. In the 1990s Mahinda Rajapaksa was a side-lined and marginalised centre-left populist who had been condemned to the backbenches. Like Dudley Senanayake at the end of the Kotelawala government, he chose to dissent silently, rather than going all out against his party. Unlike MPs who crossed over to the UNP, he did not question his party: merely its right-wing tilt. To quote Deng, in other words, he bided his time. It is doubtful whether his son is following the same path today. But the reasoning seems clear. Namal Rajapaksa is a prince in waiting, and he cannot garner the support his presidential uncle lost his family by voting with the SLPP on deals that can, even in the short-term, general mass hostility.
The SJB does not have this excuse. It cannot afford the luxury of abstention.In Dante’s Hell, the souls debarred from entering heaven or hell are of those people who, at a time of moral crisis, chose not to take sides, and instead feigned neutralism.
Does the SJB want to take this path? There is a moral dimension to these issues. The IMF deal has been finalised. The government cannot backtrack on it. The question, then, is not whether we should go ahead with the deal – the Rajapaksa government already answered that question when it chose to resort to the IMF a year or so ago – but whether the present regime has taken every possible, necessary step to safeguard the vulnerable from the shocks which are bound to follow the enforcement of IMF conditions.
Indeed, it is perfectly possible, even within the ideological limits of the SJB, which has always been of two or three minds regarding the IMF, to approve of the IMF deal per se while voting against the deal vetted and finalised by the government.
Moreover, while the ruling party typically votes for such deals to emphasise its control, its dominance, its hegemony, fringe parties vote against them to emphasise their opposition to that hegemony. This is Politics 101, and in the context of IMF deals that have the potential of mass oppositional resistance and mobilisation, it is incredible that the SJB, which in the past has organised demonstrations against austerity, failed to take a clear stand on it.
But this is incredible only if you ignore, or set aside, the SJB’s co-option by right-wing elements, that is the economic mainstream, represented by not just political parties, but also economic think-tanks and civil society circles. Their influence has been sufficiently dominant, one feels, to distract a mainstream Oppositional outfit from engaging in its task of opposing or boycotting government deals. This is, to say the least, highly worrying.
Worrying, because it shows how jaundiced the economic establishment and civil society elite are with respect to IMF reforms. Civil society, or at least a big chunk of it, are opposed to the government. Yet they are not necessarily opposed to the IMF reforms, at least not in the same way that the political Left, including the JVP-NPP and the ULS, are. This, in my view, represents a colossal failure. It betrays an inability to reconcile the government’s austerity overdrive with the tenor of IMF conditionalities, or the link between the unpopular nature of those conditions and the authoritarian character of the government.
This is something even writers and commentators known for their “liberal” views often gloss over. Here, for instance, is Tisaranee Gunasekara:
“During the three months of Aragalaya, the Opposition had ample time to study what the Rajapaksas got wrong and come up with a common minimum programme of corrective regeneration. The Opposition failed in that task. The only one with any workable plan happened to be Ranil Wickremesinghe. While the SJB was promising to end fuel queues via the generosity of the Middle East, the Wickremesinghe administration worked on the QR system. While the JVP was promising to end the dollar shortage via donations from comrades domiciled abroad, the Wickremesinghe administration promoted tourism and wooed foreign remittances. Ranil Wickremesinghe still remains the president because he ended the soothsayer-economics of the Rajapaksas.”
Gunasekara’s basic assumption, that what saved Ranil Wickremesinghe was his decision to turn away from the Rajapaksas’ economic policies, or “Cabraalnomics”, is only half-correct. What Wickremesinghe enabled – which is perfectly plausible, and is in keeping with what has unfolded in other countries facing similar crises – was a shift to the right. The Rajapaksas had already enabled this shift in mid-2022. The Wickremesinghe administration merely fast-tracked it.
One cannot fault either administration for facilitating such a shift: such responses from the State, though objectionable, can only be expected. One can, however, fault writers for misreading it as a benign move, on the part of the present regime, to correct the policy errors of its predecessor. There is nothing benign in one government descending to the right and its successor completing that descent. Besides, the so-called “soothsayer-economics” of the Rajapaksas are no different to the neoliberal concoctions of the present.
Like certain SJB MPs, the likes of Gunasekara do not seem to be aware that the debate over IMF reforms and the debate over the government’s handling of protesters are perceived as one and the same. She seems to be of two minds regarding the government in general and Ranil Wickremesinghe in particular. The latter, of course, is busy consolidating his position. He should not be censured or condemned for that: it is what presidents do.
But in the face of such Machiavellian moves, it is inexcusable for Opposition parties to feign neutralism. Let me bring up an analogy: the claim, made by some SJB MPs, that by abstaining from the vote the party actually opposed the IMF deal, is no different to the Rajapaksa government’s silly and incredible assertion that Sri Lanka coveted support from most countries at the UNHRC, even those that abstained, in 2021. Back then the SJB rightly called out on the government’s reasoning. I think it’s only fair to call out on the Opposition’s reasoning, now.
The writer is an international relations analyst, researcher, and columnist who can be reached at udakdev1@gmail.com.
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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