Features
IPKF’S Withdrawal: Correspondence between Premadasa and Rajiv Gandhi
2 June 1989
My dear Prime Minister,
I am writing to you on some matters of urgent importance. The most immediate matter relates to the presence of Indian Forces in Sri Lanka. After I assumed the Presidency of Sri Lanka, the Government of India initiated the withdrawal of troops. We are grateful for your prompt action in this regard.
One of the important campaign pledges made by me at both the Presidential and Parliamentary Elections was the withdrawal of the IPKF on being elected to office. I assumed the office of President of Sri Lanka-on the 2nd of January 1989. Five months have elapsed since then. The complete withdrawal of the IPKF will, hopefully, contribute to stabilizing the situation in Sri Lanka, where the presence of the IPKF has become a deeply divisive and resentful issue. It is also in keeping with your often expressed sentiments that the IPKF will be withdrawn when requested by the President of Sri Lanka.
I am thankful for the efforts of the IPKF during the time it has been in our country. I have often paid tribute to the bravery of the many officers and men who lost life and limb in the discharge of their duties. The tragedy of violence has not only affected your soldiers, it has destroyed many Sri Lankans as well. Our Armed Forces and large numbers of civilians, innocent and uninvolved, have suffered beyond description. Their sacrifices must not be in vain. I am confident that a complete withdrawal of the IPKF will enable me to secure the trust and confidence of my people. Therefore, I would like all IPKF -personnel to be withdrawn from Sri Lanka by July 31st 1989.
The withdrawal of the IPKF will also enable Sri Lanka to host the SAARC Summit in November this year in a climate of tranquility. As you are aware, we could not undertake our obligation to do this in. 1988. You will appreciate how difficult it is to hold a regional gathering of this nature with foreign forces on our soil. Our people are most enthusiastic about welcoming leaders of our own region, particularly our closest neighbours. However, their anxieties must also be satisfied, especially in relation to their deep patriotic and, nationalist sensitivities.
In this context, we have submitted several proposals regarding an Indo-Lanka Friendship Treaty. I believe that, in the long term, such an agreement will further strengthen relations between India and Sri Lanka. I await your response to our proposals in this regard.
We have always appreciated your sincere interest in the unity and the territorial integrity of our country. our own efforts to this end need the understanding and goodwill of our neighbours. I believe, that your people and you yourself, share these objectives and will contribute to their realization.
I have just seen the Aide Memoire which was handed over to me by your High Commissioner, this evening. As the Aide Memoire refers to the need for consultations between our Governments, I am designating my Foreign Secretary to personally clarify our position on these matters.
With assurances of my high consideration and esteem.
Yours sincerely,
His Excellency Shri Rajiv Gandhi
Prime Minister of India
Prime Minister’s Office
New Delhi
INDIA
Dear Mr. President,
I have your letter of the 2nd June, which was handed over to me by your Special Envoy, Foreign Secretary Tilakaratne.
India is committed to preserving the unity and integrity of Sri -Lanka, under the terms of the Indo-Sri Lanka Agreement. It was as a. result of this commitment and. our responsibility as a guarantor for the implementation of the Indo-Sri Lanka Agreement that we responded to the request of the Government of Sri Lanka to send the IPKF. This was at a time when the situation seemed headed inexorably towards the break-up of Sri Lanka. During its presence, the IPKF has striven, with considerable success but at heavy cost to itself, to prevent such an outcome and safeguard the unity and integrity of Sri Lanka.
Three successive elections have been held peacefully despite threats of terrorist violence in the North-East, and all Tamil-groups, barring one, have joined the democratic process. All the Tamil groups, barring one, had given up the demand for Eelam. If the process of devolution of powers to the Provincial Council had been implemented in time and had the deliberate attempt by the Sri Lankan Government to alter the population balance in the Tamil areas by the continued State-sponsored colonisation of Tamil areas been stopped, the extremists s would have been further isolated and marginalised, and the violence ended.
As you have yourself stated, we had started the withdrawal of the IPKF even before you requested for it. A broad time frame for the IPKF’s withdrawal was also discussed at our initiative, based on which your Foreign Minister had made a statement in your Parliament on the 31st March, 1989. All this was being done on the basis of assurances given by the Sri Lankan Government and the assumption that the implementation of the Indo-Sri Lanka Agreement especially the devolution of powers to the Provincial Councils – would proceed simultaneously, so that the legitimate aspirations of the Tamils could be met within the framework of the unity and integrity of Sri Lanka. It is pertinent to recall that it was precisely because these aspirations were not being met that a situation was created which threatened the unity and integrity of Sri Lanka.
I have always maintained that the IPKF will not stay in Sri Lanka a day longer than necessary. But we cannot be unmindful of the responsibilities and obligations of the two countries under the Indo-Sri Lanka Agreement. Tamil militant groups were persuaded to support the Indo-Sri Lanka Agreement and to join the democratic process within the framework of a united Sri Lanka only on the basis of assurances that the Tamil majority North-Eastern Province will be given substantial devolution of powers. Our two Governments are, therefore, morally and legally obliged to ensure that the Tamils are given the autonomy they were promised, both in the 13th Amendment to the Sri Lankan Constitution, as also in the additional areas promised in the Agreement signed between former President Jayewardene and myself on the 7th November, 1987. Failure to do so will only lend credence to the claims made by some Tamil groups that Tamils cannot expect justice within a united Sri Lanka. We have to be fully conscious of the dangers of a return to a situation which may be worse than that prevailing prior to the Indo-Sri Lanka Agreement.
We believe that, in the spirit of traditional friendship between our two countriesp we must jointly draw up a mutually agreed schedule for the full implementation of the Indo-Sri Lanka Agreement and the complete withdrawal of the IPKF. The two have to be joint, parallel exercises.
We have no objection to your proposal for a Friendship Treaty. I had told your Special Envoy that we could set dates for commencing discussions with a view to finalising the text of the proposed treaty.
Yours sincerely,
His Excellency
Mr. Ranasinghe Premadasa
President of the Democratic
Socialist Republic of Sri Lanka
Colombo
MOST IMMDT CONFIDENTIAL
No.292
For Kalpage From Tilakaratna
Grateful transmit following message first thing tomorrow morning.
From H.E.President of Sri Lanka
To H.E. Prime Minister of India
Excellency,
I am glad to inform you that the LTTE has announced a complete cessation of hostilities against the Sri Lanka Government with immediate effect.The LTTE which is no longer a proscribed group has in the course of recent discussions with the Government of Sri Lanka agreed to settle whatever problems they have through a process of negotiation.
Under the circumstances it will be appreciated if your Excellency will ensure that the IPKF does not take any offensive action against the LTTE which will tend to prejudice the negotiations that are currently. in progress.Accept Excellency the assurances of my highest consideration.
R. PREMADASA, PRESIDENT
Dear Prime Minister,
I am in receipt of your letter of 20 June in reply to my letter of 2 June 1989.I thank you for reiterating India’s commitment to preserve the unity, sovereignty and territorial integrity of Sri Lanka as was stated in the Indo-Sri Lanka Agreement.
We appreciate ‘the assistance given by the Indian Government in providing the personnel to assist in the acceptance of arms surrendered by the militants as envisaged by- Article 2.9 of the Agreement. We are also thankful for the assistance provided at our request, in terms of Article 2.16(c) of the Agreement and paragraph 6 of the Annexure in affording military assistance to ensure the cessation of hostilities.
I am unable however to accept the contention that the implementation of the Indo-Sri Lanka Agreement, including the devolution of powers to the Provincial Councils, is in any way linked with the withdrawal of the Indian Armed Forces. They had been invited to Sri Lanka for the specific purpose of guaranteeing and enforcing the cessation of hostilities. The Indo-Sri Lanka Agreement does not provide for continued military activities by the Indian Armed Forces in Sri Lanka after a request has been made by me to have them withdrawn. Continuation of such military activities would also be a violation of peremptory norms of international law.
The Indian Peace Keeping Force came to Sri Lanka at the request of the President of Sri Lanka. Due to the circumstances that arose thereafter the IPKF was requested by the President to afford military assistance to ensure the cessation of hostilities. The only condition that should be satisfied for the withdrawal of the Indian Armed Forces is a decision by the President of Sri Lanka that they should be withdrawn. The request made by me to withdraw the Indian Armed Forces has satisfied this condition. It is therefore incumbent on the Government of India to withdraw the Indian Armed Forces from Sri Lanka.
The proposals for the political settlement of the ethnic problem negotiated from 4.5.1986 to 19.12.1986 as well as the residual matters to be finalised between the Government of Sri Lanka and the Government of India have all been accepted and incorporated in the relevant amendments to our Constitution and the Provincial Councils Act. The delay in -giving effect to certain proposals within the time frame envisaged by the Agreement had been occasioned by the inability of the Indian Armed Forces to ensure a cessation of hostilities and violence in the North and the East.
The actual functioning of the Provincial Councils in the new system of administration is applicable not only to the North and the East -but to all the Provinces of Sri Lanka. This is entirely a political process in which the military has no role whatsoever. You will no doubt agree that it has been an experience common in many other jurisdictions that the establishment of an entirely. new structure of administration based on devolution, is essentially a long term process. There is neither a legal nor any other rational basis for the presence of any military force to ensure that the administrative structure is fully in place in any Province of Sri Lanka. I have, in consultation with the Ministers of the Cabinet and Chief Ministers of the Provincial Councils, taken all steps to ensure that the administrative structure necessary for the effective exercise of devolved powers is in place as expeditiously as possible.
As I have already intimated to you in my letter of 2 June 1989 one of the important pledges made by me both at the Presidential and at the Parliamentary Elections was to ensure the withdrawal of the Indian Forces. To quote the Manifesto
‘We will seek a Friendship Treaty with India on the lines of the Indo-Soviet Friendship Treaty. If by the time our candidate is elected President the Indian Forces have not left, we will ensure that they are withdrawn.’
The main Opposition Party, the Sri Lanka Freedom Party, in their election manifesto had stated that the Indo-Sri Lanka Agreement would be abrogated and the Indian Forces asked to leave. Thus it will be seen that over 95% of the voters clearly mandated the withdrawal of the Indian Forces. The majority appeared the UNP proposal for the conclusion of a Friendship Treaty with India.
I would also like to mention a most significant development, which may not have been brought to your notice, namely that the majority of the people of all three communities in the North and the East demand the immediate withdrawal of the Indian Forces.
In your letter you have mentioned that there has been a deliberate attempt by the Government of Sri Lanka to alter the Population balance in the Tamil areas by continuing state-sponsored colonisation. I must emphatically refute this. There has been no colonisation whatsoever in these areas since the signing of the Indo-Sri Lanka Agreement.
The ground is now set for the Government to resolve any Outstanding issues relating to the ethnic problem on the basis of consultation, compromise and consensus with all communities and groups concerned. As I have already informed you, the LTTE has announced the cessation of hostilities against the Government of Sri Lanka. They have also resolved to settle any outstanding issues through negotiations and discussions. It is in this context that I have requested you to issue the necessary instructions to the Indian Armed Forces to refrain from offensive operations against the LTTE. The LTTE has already expressed its willingness to put an end to such activities against the Indian Armed Forces on a reciprocal basis. The withdrawal of the Indian Forces within the time frame visualised by me is an essential pre-condition for the Government to proceed with the consolidation .of a political settlement.
Far from being of any assistance in the complete resolution of the ethnic problem, the presence of the Indian Forces is now a serious impediment. In this connection, I must bring to your notice an alarming development that has been taking place in the -Northern and Eastern Provinces. There are complaints that youths mostly of tender age are being forcibly conscripted by certain political groups and are being trained at the hands of the Indian Forces. I need not elaborate on the possible consequences that will follow if this is. not checked forthwith.
Therefore, in consideration of all these circumstances, I again earnestly request an immediate recommencement of the withdrawal of the Indian Armed Forces and an acceleration of this process.
I am glad at your favourable response to my proposal for a Friendship Treaty with India. We have already given our draft to the Ministry of External Affairs in New Delhi. I would request that
discussions should commence without delay, so that this Treaty could give concrete and expeditious expression to the traditional bonds of friendship between our two countries.
Yours sincerely,
High Commissioner for India
Colombo, Sri Lankan
No. COL/SCR/551/48/89
30th June, 1989.
My dear Foreign Secretary,
Please refer to your letter No.DA/MISC/1, of 29th June, 1989 forwarding to me a copy of a message from His Excellency Mr. R. Premadasa, President of Sri Lanka, to His Excellency Sri Rajiv Gandhi, Prime Minister of India.
2. I have pleasure in attaching a message from His Excellency Shri Rajiv Gandhi, Prime Minister of India, to His Excellency Mr. R. Premadasa, President of Sri Lanka, in reply.
3. I shall be grateful if the message is transmitted to its high destination most immediately.
With kind regards,
Yoursi sincerely,
(L.L. Mehrotra)
Mr. B.P.Tilakaratna,
Foreign Secretary,
Ministry of Foreign Affairs
Public Building,
Colombo-1.
Text of message received by the High Commissioner for India in Colombo, telephonically from His Excellency Shri Ravijv Gandhi, Prime Minister of India, to His Excellency Mr. R. Premadasa President of the Democratic Socialist Republic of Sri Lanka.
June 30, 1989.
Dear Mr. President,
I have your message of the 29th June sent through Your High Commissioner.
The Indo-Sri Lanka Agreement provides for a cessation of hostilities between the Tamil militant groups and the Sri Lankan Forces, and also for the Sri tankan Forces to stay in barracks in the North East Province. Both these were achieved on the 30th July, 1987. Thus there has already been an effective cessation of hostilities between the Sri Lankan Forces and the LTTE. I am glad that the LTTE has now formally conceded this reality.
We hope that the formal agreement of the LTTE to cease hostilities clearly implies their commitment to the unity and integrity of Sri Lanka and to renounce violence and to respect democratic processes. We trust that, consequent to giving up violence, the LTTE will resume surrender of arms through the Sri Lankan Government a process which had started on the 5th of August, 1987 and is not yet complete. Unless the LTTE have undertaken to hand over their arms and to renounce violence not only towards the Sri Lankan Government but towards the other citizens of the North Eastern Province, their announcement of cessation of hostilities would be meaningless.
Since the IPKF has a mandate in terms of India’s role as a guarantor, for ensuring the physical safety and security of all communities of the North Eastern Province, I would appreciate clarifications, on the points I have mentioned above. These clarifications will facilitate an immediate decision on the IPKF’s cessation of offensive action to disarm the LTTE. The earlier we receive your response, the quicker will be the process of initiating suitable action.
Yours sincerely,
H.E. Mr. R. Premadasa,
President,
Democratic Socialist Republic of Sri Lanka,
Colombo.
ANNEXURE “G”
CALLING LANKACOM NEW DELHI DATE 4.7.89. MOST IMMEDIATE
MOST IMMEDIATE
CONFIDENTIAL
No. 302
For Kalpage From Tilakaratna.
Please transmit message given below from H.E. the President to H.E. Rajiv Gandhi Prime Minister.Please transmit this tomorrow morning and inform me when you have done so.
QUOTE
Dear Prime Minister,
I have your message of 30th June tent through your High-Commissioner in response to my message requesting you to ensure that the Indian Armed Forces in Sri Lanka do not take any offensive action against the LTTE. Such action or any intensification of operations is liable to prejudice the negotiations currently in progress and prolong the armed conflict.
Your statement that cessation of hostilities took place on 30th July 1987 does not accord with facts. The LTTE ceased hostilities against the Sri Lanka Security only for a few days but resumed violence on 2nd August 1987 and continued until they announced a cessation of hostilities in June – 1989. During the interim 148 service and police personnel were killed and 80 were wounded, 481 cilvilians were killed and 115 were injured.
The LTTE announced a cessation of hostilities’ only in June this year after the commencement of the dialogue With the Government. This cessation covers not only the Government but also the people in the North and the East and in fact the people in the whole of Sri Lanka. At the same time the LTTE re-iterated its commitment to resolve all outstanding problems through negotiation and discussion and indicated their readiness to enter the democratic process.
As stated in your message you have been seeking to disarm the LTTE for the past two years and this process is not yet complete nor have you been able to bring them to the negotiating table. I am confident that I will be able to ensure that the LTTE give up their arms after the Indian Armed Forces have been withdrawn.
The political solution which I seek to provide will not only be within the frame work of our Constitution but must also preserve the sovereignty of our people, the unitary character and the territorial integrity of our country.
The responsiblity of providing safety and security for its citizens within Sri Lanka is solely the responsibility of the Government of Sri Lanka. The Indo-Sri Lanka Agreement does not and indeed cannot in International Law provide a mandate’ for the Government of India or Armed Forces to assume any responsibility for this function otherwise than at the express request of the Lanka Government. In any event during the past two years when the Indian Armed Forces were operating in a the Northern and Eastern Provinces they were unable to prevent the killings of a number of civilians and the displacement of even a larger number from their homes beside the casualties refered to above.
Any interpretation of the Agreement which seeks to provide a mandatory role for the Government of India or its Armed Forces within Sri Lanka otherwise than at express request of the Government of Sri Lanka would constitute a serious interference in the internal affairs a friendly sovereign country and a gross violation of the peremptory norms of International Law. I am sure that such is not your intention.
I trust these clarifications will enable you to ensure that the Indian Armed Forces do not continue any offensive operations against the LTTE.
Yours sincerely,
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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