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Could ‘greenwashing’ Adani wind project help save Mannar?

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By Hemantha Withanage

Senior Advisor, Centre for Environmental Justice

There is no gainsaying that we have to look for green energy to combat climate change. However, the world now seeks a “just energy transition”, meaning the development of energy sources that do not harm local communities and nature while doing justice for workers. Mannar, the location for the Adani wind power project, is undoubtedly a very sensitive location for different reasons. This island has been identified as highly vulnerable to climate change. Mannar is expected to lose over 8000 ha of land to sea level rise in the next 25 years.

The proposed wind power project in Mannar has become controversial due to its impact on the birds, the cost of its electricity, and the unsolicited bidding process. The project is unusual as it is an agreement with political regimes in India and Sri Lanka and not an ordinary investment project. It is also linked to the proposed transmission line between India and Sri Lanka. This is not included in the approved Long-Term Energy Generation Plan-2023-2042(LTEGP) or the Renewable Energy Development Master Action Plan (REDMAP) developed by the CEB.

This Environmental Impact Assessment (EIA) is highly inadequate due to its weak components, including the identification of alternatives, lack of cumulative impacts assessment and an attempt to greenwash a destructive project.

Why is cumulative impact important?

The Ceylon Electricity Board (CEB) manages a 100 MW “Thambapawani” wind power project in Mannar. A feasibility study for a second project has also been conducted. The Environmental Impact Assessment (EIA) for the Adani project is the third project set to be built on Mannar Island.

On another note, both coasts of the island have been given to Mars Minerals and Metals, an Indian mining company, to explore ilmenite. Furthermore, an Australian mining company is in the process of purchasing land for ilmenite mining. However, we have noticed that the TOR has not specifically requested a cumulative impact assessment, which is a significant weakness.

The Adani wind power project will install 52 turbines on the entire island and construct several kilometres of access roads across sensitive habitats. The EIA states, “The key result of the cumulative assessment is that the Mannar II wind park would not make any material change to the cumulative impacts for Mannar I and the transmission line, as it would contribute only a small additional risk. I disagree with this statement as the existing project located only one line of turbines on the southern coast of the island; in contrast, the new 250 MW Adani wind power project will lay 52 turbines on the entire island.

The Sustainable Energy Authority should be held responsible for declaring this region a renewable energy generation site without first assessing its social and environmental impact. Ideally, they should have conducted a Strategic Environmental Assessment before inviting investors. However, the MANNAR DEVELOPMENT PLAN 2018-2030 prepared by the Urban Development Authority has identified only the southern coast for renewable energy generation and the northern coast for fishery development. Yet, they compromised this plan when it gave a no-objection letter to the Adani wind power project, perhaps due to political pressure.

Effectiveness of emergency radar shutdown system

The Centre for Environmental Justice pushed the CEB and the Asian Development Bank regarding the ADB-funded 100 MW wind power plant due to the project’s location in the central Asian Flyway. This intervention resulted in installing an emergency radar shutdown system at an extra cost of about 1 million USD. As we know, Mannar is the most important wintering wetlands for migratory birds in Sri Lanka. In my opinion, this radar system is somewhat effective due to the size and location of the CEB project. However, we questioned the effectiveness of a radar system when the Adani Wind power project was built across the entire island.

According to The Island newspaper on 1st April 2024, Power and Energy Minister Kanchana Wijesekera has stated, “According to the EIA Report, meticulous planning has been undertaken to mitigate potential risks to migratory birds. Contrary to assertions, the EIA report explicitly states that turbines will not be within the migratory birds’ flight corridor”. Interestingly, he believes that birds tend to fly within a corridor that spans 2 kilometres in width. Unfortunately, in my opinion, the proposal to create a so-called bird migration corridor is just a greenwashing idea. When we already know that elephant corridors in Sri Lanka are not functioning, how can they expect the birds to follow these human rules?

According to the data reported in Thambapawani solar park, the most affected birds due to turbines were raptors such as Brahminy kites. However, water birds have been adversely affected by the transmission lines. The EIA report endorses the feasibility of the wind park, claiming that the period with high wind does not coincide with the bird migration period. However, the Environment Monitoring Report- Thambapawani Wind Project shows 93 birds from 21 species have been killed during a 4-month period due to both transmission lines and the wind turbines. In the case of Thambapawani Wind Power Project, higher bird collision risks than predicted have occurred, as there are reported bird collisions in the transmission lines. I believe bird collisions will highly increase once the whole island is covered with wind turbines installed under the Adani wind power project.

I doubt whether the new wind power proposal has real interest in installing an effective radar system. The reason is that the Adani project, which has spread all over Mannar island, has allocated only 253,968 USD for the Emergency Radar Shutdown system. In comparison, the CEB wind project has spent about 1 million USD to install one horizontal and 2 vertical radar systems. Considering the area spread of the Adani project It might require more systems to install. Since there is no design available, this proposal is just a greenwashing.

Flooding may cause severe social impacts

Besides the impact on birds, the project will increase the flooding in the area. Thambapawani wind power project is responsible for the increase in floods on Mannar Island during the last few years, though it was not identified during the EIA stage.  We believe that this project will further aggravate the flooding in Mannar.  Figure 3-10 on page 109 of the EIA shows high flooding areas encompassing several turbine sites, access roads, and a substantial part of the main road bisecting the island. The risk assessment on page 181 indicates the project is in a flood hazard area, with flood risk for turbine foundations on an annual basis.

Out of 72,000 people living in Mannar island, at least 40,000 people were affected by floods in the past. This project will undoubtedly increase flooding. However, no funds have been allocated for offsetting flood related impacts at the operation stage. The company will not be responsible for future flood mitigation work, and the government of Sri Lanka will have to spend public money on this.

Impacts on freshwater

According to the UDA Mannar Development Plan, water scarcity has been identified as a prominent element. The report states, “Historically, Mannar town has been facing many problems in accessing drinking water. Because Mannar is an only Island, people depend on groundwater for their day-to-day needs, but that is too salty and not suitable for drinking”. Due to ill development in the island including proposed mining, piling work for windmills, the proposed road network and the drainage and flooding will have serious negative impacts on the freshwater availability for human consumption. Who is going to pay for the future water projects?

Energy sovereignty at stake

Energy sovereignty is a prerequisite for the independence of a country. This project will have impacts beyond the environment and society. Although the Sustainable Energy Authority has been the project developer, it is only a proxy proponent. It is taking environmental clearance on behalf of the Adani company, owned by an Indian tycoon, to enter the Sri Lankan energy generation sector. They will have 6% of the control in the energy sector, and with Adani’s second power plant in Poonaryn, they will have 12% control of the energy generation in Sri Lanka. We also know there is ongoing negotiation to connect India and Sri Lanka through a transmission cable. This will seriously compromise the energy sovereignty of Sri Lanka.

Lack of alternative identification

The EIA’s alternative analysis is crucial. It should have also explored the possibility of having offshore turbines, alternative sites, and downscaling the project. High wind energy potential sites in mainland Sri Lanka could also generate 250 MW wind farms without significant ecological damage. Solar power is also a viable alternative. However, these technology alternatives have not been adequately considered in the EIA.

Although we agree that the LTGEP plan 2022-2041 includes multiple renewable energy sources and low-carbon technologies to provide green energy to the country for the next two decades, we have pointed out that this plan has not undergone a Strategic Environmental Assessment. As a result, it fails to identify the negative impacts of wind energy compared to solar power in other locations. Therefore, we would like to reiterate that the alternative site and technology analysis is highly inadequate in this EIA.

Destroying palmyra trees and reforestation

The EIA states that the proposed project will not have major adverse impacts on species of flora in the overall landscape. However, according to the EIA, a total of 4,256 Palmyra palms could be affected due to the installation of the wind turbines in the Hard-Standing Area (95mx90m). Additionally, 4,981 Palmyra palms will be cleared to establish the access roads and internal power cables. The number of palmyra palms in the soft standing area is 8822. We consider this as a major change in the tree cover on the island and will have a severe impact on the bird population as many birds use them for roosting and nesting. This aspect has not been studied adequately in the EIA.

The Mannar residents think that the number of palmyra palms to be removed is much higher as there are many saplings under each mature tree. EIA also states It is difficult to predict the exact number of palmyra palms to be felled site-specifically as action will be taken to minimize the palmyra palms to be cut in the Hard and Soft Standing Areas during the construction stage. Furthermore, a total of 260 coconut palms will be affected by turbine construction.

EIA has proposed an allocation of USD 707,491 for 62 ha of reforestation. However, it has not identified the areas where reforestation will happen. This is very important to negate the impacts of loss of habitats for species. However, such tree plantation will not immediately benefit the birds and other animals which use those trees as habitats and for nesting. The EIA does not provide which species will have significant negative impacts due to the loss of over 8000 trees.

Do not mix-up CSR and benefits to local communities

We have learned that the project proponent has already reached out to fishermen groups to convince them on the project. However, except the improved road network, the community will receive no benefits from the project. Mannar is a tourist destination popular among the bird watchers. The EIA report expects tourism potential will develop further as they might be attractive for tourists to watch those turbines. We believe this is not really the case. In fact, tourism potential may be reduced due to a lack of incoming birds. A steep drop in bird visits, a reduction in wildlife and the depletion of the tree cover in Mannare will severely impact Mannar’s economy and the potential for wildlife-based tourism planned by the Tourism Development Authority and Northern Development framework.

Meanwhile, the EIA has included CSR activities as part of the benefits. They cannot be considered the benefit sharing of the project. Adani as an Indian company and mandatory for companies to spend at least 2% of average net profits made during the three immediately preceding fiscal years (the “Minimum CSR Amount”) on CSR initiatives in accordance with the company’s CSR Policy.

We have learnt that non-title holders of lands will not get compensation for their losses. They will only get land development costs and a one-time payment of 100,000 rupees. Information on the land entitlement in the project area is not available. Around 4500 people live in the GN divisions where these wind turbines are planned.

Does the project conform to just energy transition principles?

The climate solution may harm the people and nature who are not even responsible for climate change. While the contribution of people in Mannar is negligible to climate change, the migratory birds are not responsible for the climate crisis. This is where just energy transition principles are important.

‘Just Energy’ transition is about defunding fossil fuels in a way that reduces inequality, shifting the costs of climate action onto wealthy polluters while prioritizing economic, racial, and gender justice. It requires stopping the use of fossil fuels and utilising renewable energy sources, while ensuring that efforts to scale up renewable energy production do not replicate the harms of fossil fuel, like taking land from people without consent and unjust compensation. It also requires working with indigenous community leaders to seek their free, prior, and informed consent when rolling out renewable projects on their land. The Adani project must respect the Just Energy Transition principles. However, this project neglects the community’s voices and participation.

The project could cause more negative impacts than positive ones on the country, posing significant threats to the environment and communities. The EIA has not considered the combined effects of this and future projects. The area has unique natural resources and ecosystems that could be adversely affected. The extended cost-benefit analysis has not considered the loss of fishery, long-term impacts on birds, bird migration, and other ecological impacts. If the project is to continue, it should explore better alternatives. The project-approving agency should advise the proponent to produce an addendum to study such alternatives for this wind power project. Greenwashing, such as the so-called bird migration route, cannot save Mannar Island or the bird life.



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Features

The heart-friendly health minister

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Dr. Ramesh Pathirana

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.

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A LOVING TRIBUTE TO JESUIT FR. ALOYSIUS PIERIS ON HIS 90th BIRTHDAY

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Fr. Aloysius Pieris, SJ 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 on Nov. 23, 2019.

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.

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A fairy tale, success or debacle

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Ministers S. Iswaran and Malik Samarawickrama signing the joint statement to launch FTA negotiations. (Picture courtesy IPS)

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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