Features
KEY TO DEVELOPMENT IS COMMITTED AND ETHICAL LEADERSHIP
BY OMAR KAMIL
The Presidential Election of 1988 was held amid fear of disruption and death threats to campaigners. During the election period, a curfew was in force from 11 pm to 5 am throughout the month from Nomination to Polling Day while the forces of disruption were also enforcing fear psychosis, causing shops, government institutions, offices, and even court houses to close regularly.
From Nomination Day, the candidates Prime Minister Ranasinghe Premadasa, Mrs. Sirima Bandaranaike and Mr. Ossie Abeygunasekara were conducting their election campaigns under heavy security. People were fearful of attending meetings, and attendance at most meetings was limited. The JVP did not run at this election.
Traveling to ‘Sirikotha’ in Battaramulla in the evening hours was a nightmare due to fear of being stopped by violent mobs who opposed the elections. Prime Minister Premadasa’s campaign headed by Mr. Sirisena Cooray held its meetings at the Colombo at Mayor’s residence while the General Secretary of the UNP, Mr. Ranjan Wijeratne, operated from Sirikotha in Battaramulla. Those present at the Mayor’s residence were, Messrs Sirisena Cooray, Jehan Cassim, Imran Markar, F. A. Yaseen, A. H. M. Azwer, Siridharan, myself, and a few others.
As a Municipal Councilor in Colombo, I was appointed co-ordinator of the Northern and Eastern Provinces while others were assigned to co-ordinate the other 25 districts. Due to the curfew, public meetings were held in the mornings and would end around 8.00 p.m. to enable people to get back to their homes before the curfew came into force.
Under these trying circumstances, Prime Minister Ranasinghe Premadasa launched his election campaign in Kandy at a meeting chaired by Hon, E.L. Senanayake MP. In view of the local people being unable to get involved in stage arrangements etc due to reprisals, party workers and supporters from Colombo decorated the stage and surroundings and participated at the meeting.
Election meetings were held throughout the country by the candidates, but under a cloud of uncertainty of disruption by those who opposed the elections. Despite all these threats and obstacles created by the JVP to discourage polling or casting of votes, the people braved the threats and voted in numbers for Mr. Premadasa, giving him over 50% of the total vote cast in the first count.
The economy of the country during this period was in dire straits as the JVP called for a boycott of Indian products and imports from India, disrupting the of Colombo Port with wildcat strikes and many shipping lines bypassed Colombo calling at neighboring ports instead. The conflict in the north and east of Sri Lanka was a further burden on the economy.
President Ranasinghe Premadasa assumed office on December 20, 1988, at a time when Treasury reserves had dwindled to a very low ebb and was barely sufficient to service three to four weeks of imports. Oil imports too could not be made as the establishment of Letters of Credit required at least two months requirement of foreign exchange to be held in the Treasury.
Upon assuming office, one of the first acts of the new president was to appoint Retired Deputy Governor of the Central Bank, Dr. H. N. S. Karunathilaka, as the Governor of the Central Bank of Sri Lanka, He was immediately sent off to Washington to finalize a Standby Agreement with the IMF (International Monetary Fund).
Although stringent conditions were laid by lending agencies such as the World Bank and International Monetary Fund, the president confidently renegotiated the terms and conditions of the agreement without burdening the people with additional taxes.
The Privatization Program of the IMF was effectively transformed to a people friendly “Peoplization” (a new word coined by the president) with the ownership of plantation lands being retained by the government in respect of the estates vested under the Land Reform Commission (LRC), Janatha Estate Development Board (JEDB) and Sri Lanka State Plantation Corporation (SLSPC). Nine Regional Transport Boards were established in all the Provinces and each Province was called upon to manage the transport services without seeking funds from the Treasury.
The requirement of the IMF to prune the numbers employed in the Government sector led to a Voluntary Retirement Scheme (VRS) being introduced through Treasury Circular 44/90, whereby those above 50-years of age could retire on pension.
The management of estates vested in the LRC were leased for 30 years to quoted Regional Plantation Companies with previous plantation management experience and this arrangement reduced the burden of the Treasury paying workers’ and staff wages and salaries hitherto funded by it.
All these innovative measures helped to reduce the burden on the Treasury and the economy began to pick up slowly. In order to increase Foreign Direct Investment (FDI), the President introduced a 200-garment factory program expanding the Free Trade Zone (FTZ) concept enabling factories located throughout the country to enjoy benefits previously restricted to areas under the Greater Colombo Economic Commission (GCEC) which was replaced by the Board of Investment (BOI).
This helped to locate factories even in the remotest parts of the country to provide employment to workers near their homes so that the wages they earned would be circulated in the village.
All these steps brought prosperity throughout the country and within a short period of two years, the foreign reserves which were barely sufficient for three weeks imports increased to five and a half months. In addition, incentives were given to the tourist industry to build hotels and resorts all over the country.
President Premadasa identified the best men for the jobs that needed to be done. Among them were Finance Secretary R. Paskaralingam, Secretary to the President K.H.J. Wijayadasa, Chairman BOI Lakshman Watawala, and retired civil servant Baku Mahadeva appointed to chair the National Development Bank among others.
Mr. Karu Jayasuriya, a successful businessman, was appointed to head the Government Owned Business Undertaking (GOBU) of United Motors Ltd which was vested in the state by the previous government. This institution was privatized and within a short period its shares were sold through the stock market. This innovation was a resounding success with the share prices trebling in the first month.
All these and many other innovative measures introduced by President Premadasa resuscitated the local economy despite of the conflict in in the North and East. In 1991, the JVP leaders and their cadres were arrested and peace was restored in the South of the country.
While the country was returning to normalcy and the economy being stabilized, foreign investors came here to be a part of developing Sri Lanka. Among them was the developers of the high-rise Twin Towers in the Colombo Fort.
With the JVP conflict brought under control, the President appointed a committee headed by Prof GL Pieris, Vice Chancellor of the University of Colombo, to submit a report on the youth unrest in the country. This report revealed that wherever poverty was at the highest, the insurrection was the most intense proving that one of the prime reasons for youth unrest was unemployment and poverty.
The US Quota for manufactured garments was distributed among factories countrywide and higher incentives granted to those located in the most remote areas as well as where the youth unrest was at its worst. Within a period of 18 months over 150 garments factories were in operation in many parts of the country including the Northern and Eastern Provinces.
Each factory was required to employ 500 female workers giving youth an opportunity to be employed in their own villages without trekking to the city. Prosperity started spreading throughout the country even to the remotest villages affected by both JVP and LTTE insurrections. The country was on the road to recovery, villages began to reawaken and progress and development was visible all around.
The president’s initiatives in other areas of development too were noteworthy. All projects commenced were monitored by officials specially assigned for the task. The president and his team ensured that they were completed and implemented within the stipulated time frame. President Premadasa brought about a total transformation in Sri Lanka. He was successful as he identified the right team of capable public officers to undertake a daunting task and ensure timely implementation.
The economic situation of Sri Lanka in 1988 with an ongoing North and East conflict coupled with JVP insurgency in other parts of the country was much worse than the economic crisis Sri Lanka faced in 2022/2023. Fortunately, astute leadership along with persons of integrity being appointed in the right place were the reasons that the country was able to come out of the crisis by 1990.
President Premadasa was not only able to win the hearts and minds of people of different communities but also won the confidence of the international community and funding agencies. This made top world business leaders and conglomerates come to Sri Lanka and invest here helping to rejuvenate the economy.
In today’s context, there’s much to learn from the recent history of Sri Lanka. It’s evident that even organizations like the IMF and other funding agencies are willing to engage in renegotiation of credit terms with leaders who can win their trust and confidence. This is crucial as it prevents the imposition of huge burdens on the people through increased taxes in various forms. It’s important to remember that the success of state-owned enterprises at that time was largely attributable to the appointment of professionals and skilled personnel assigned to manage various Institutions.
What the country lacks today is strong leadership with vision and determination to ensure that targets are met within set periods. President Premadasa had a commendable track record of identifying the right person for the job and constantly monitoring progress which ensured that projects were completed as planned.
Sri Lanka awaits a dynamic leader of vision to set the country right and develop its true potential. Hopefully, the necessary qualities will be available among those aspiring for the presidency later this year. Fortunately, Sri Lanka is not lacking in such talent; it’s just a matter of identifying and empowering them to lead effectively. The people now have the opportunity of electing leaders of the calibre of H.E. Ranasinghe Premadasa, a man of determination with a vision to develop the country, providing equal opportunities to all the people of the North, East, South and West.
(The writer was a senior local politician in Colombo who served both as Deputy Mayor and Mayor of Colombo in the nineties and a term as Ambassador to Iran)
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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