Features
Port City Project – Will it generate confidence amongst investors?
By Raj Gonsalkorale
Sri Lankan politics has not witnessed bi-partisan agreement amongst the major political parties on key issues that impact on the people of the country, the present generations and many more to come.
There has never been bi-partisan agreement on foreign policy, on education, on health at least at the highest policy levels. Personality politics has dominated the political landscape and it has always been about the plaudits, or damage, a policy-decision might make on a personality and as a consequence on the party or parties that person represents, and eventually whether or not that individual or the party would win the next election, and ones after that.
This absence of bi-partisan agreement has now extended to one of Sri Lanka’s most daring, controversial to many and an out of the box venture, the Port City project. The absence of such agreement, and the statements made by the current Opposition that they will amend the Port Commission Bill is bound to unsettle many would-be investors. They will be wondering what would happen to their investments if the current regime is defeated at the next election and the terms and conditions in which they invested should change after four years or so. The investment period horizon would then be four years. It does not need an Einstein to conclude that investors would be very hesitant to invest in any long term project in such a climate.
The statement of the Opposition is not being questioned here as they have rightly said that although the constitutionality of the bill has been adjudicated by the Supreme Court, amendments made, but the policy contentions had not been addressed and amendments they had brought in had been rejected by the government. It is also not clear whether the amended bill, incorporated with the Supreme Court determined amendments, had been presented to the Parliament. The public certainly has not seen the amended bill.
Bona fides of Opposition
The bona fides of the current Opposition of course is questionable, as they were the government in 2016 when they signed a tripartite agreement with the China Harbour Engineering Company and the UDA to develop the Port City into what they termed the “Colombo International Financial City, which will be in the centre of the maritime city, will be one of the key phenomenon which will decide the future development of Sri Lanka” according to the then Megapolis Minister Champika Ranawaka at the signing of the tripartite agreement. He added that the project would also fuel the planned Maritime city, Aero city, Tech city, Industrial cities and Tourist cities. That agreement has not been made public to the best of the writer’s knowledge.
The Port City project and the Port City Commission are major undertakings that will bind many future generations to its positives, but more importantly to any possible negatives as well. It would not be out of place to say that the politics associated with this futuristic project could have been handled better in a more transparent and consultative manner.
In the first place, the origin of this project, the agreement signed with China, signed by the Presidents of China and Sri Lanka in 2014, to reclaim an area of the sea and to create a Port City, was not tabled in Parliament for discussion as far as can be ascertained.
Reports indicate that the project concept goes back to 2011 and construction was set to begin in March 2011 but due to several circumstances the project had been stopped. In mid-2012, the Sri Lankan Port Authority (SLPA) announced that the construction of the then Colombo Port City project would commence on 17 September 2014. The budget was estimated to be $15 billion.
The reclamation was to be carried out by China Harbour Engineering Corporation, who has been engaged by the investor. The land given to the government was 125 hectares (310 acres), as well as 88 hectares (220 acres), while owned by the government, was planned to be leased for 99 years to the Chinese company. Twenty hectares (49 acres) was planned to be given freehold to the Chinese company.
Construction of the Colombo Port City project was launched on 17 September 2014 by Sri Lankan President Mahinda Rajapaksa and Chinese President Xi Jinping.
Sirisena-Wickremesinghe administration
The Sirisena-Wickremesinghe government that was elected in 2015 suspended the project on environmental grounds, but it is understood that this was granted approval again in 2016 having agreed to pay a penalty of USD 100 million to the Chinese company for the delay encountered in proceeding with construction as per a country to country agreement. It is learnt that in exchange for not paying this penalty, the Hambantota Harbour was sold or given on a long term 99-year lease virtually on a platter.
On August 12, 2016 the tripartite pact to construct a mega port city was signed between Sri Lanka’s Urban Development Authority, the Ministry of Megapolis and Western Development and the China Harbour Engineering Company, and as far as known, this agreement too has not been tabled before the Parliament.
With the signing of the agreement, the Colombo Port City Development Project was newly renamed the Colombo International Financial City with the government stating that the project would transform Sri Lanka into an international financial hub in the Indian Ocean region.
It is still not very clear as to the extent of land involved in this project as different extents have been mentioned in different agreements. It is also not clear whether whatever land extent has been registered with the land registry. Clarity on these will be useful.
While there is no indication that any of these two agreements had been tabled and ratified by Parliament, these two occasions are not the first time Parliament had not ratified binding agreements, if indeed they had been tabled in Parliament. The Ceasefire Agreement that Prime Minister Wickramasinghe signed with LTTE Leader Prabakaran in 2002 was not tabled in Parliament, and in fact not even known to the Executive President of the country at that time Chandrika Kumaratunga who saw the agreement after it had been signed by Wickramasinghe and Prabakaran. The consequences of that agreement are well known today.
In this backdrop comes the Port City Commission bill. While it is true that there was an opportunity for litigants to go before the Supreme Court to ascertain the validity of the bill with the Constitution, the people’s representatives, however low they are in their credibility in the eyes of the people, and neither the business community, and civil society leaders, were given an opportunity to consider the policy aspects of the bill in some depth and to work together to make it a national project of great importance to the country.
The SJB, and the residue of the UNP, as well as those who supported the Yahapalanaya government in 2016, cannot afford to oppose this bill in principle while they have the right to oppose sections of it if they differ with what they agreed to in 2016. As stated earlier, the writer stands corrected if the government and the Opposition could clarify to the public whether these important agreements were in fact discussed in Parliament and whether any attempt was made to have bi-partisan agreement on them. Besides being an important consideration for the public in Sri Lanka, it would be vital to generate confidence amongst would-be investors in the Port City project, for long term projects. Unless there can be such a bi-partisan agreement, it is unlikely that the objective of large and long term investments will be met in this project.
Philosophical arguments
While some may entertain philosophical arguments against the concept of the Port City, and suspicions and fears about China getting an extended foothold in Sri Lanka, it is also true that Sri Lanka needs to raise its economic platform if the future generations are to enjoy the opportunities they need and deserve in years to come. The current economic platform, based on Tea, Rubber, Coconut and other agricultural exports, Apparel and IT products and services exports, foreign remittances, and tourism, is very volatile and inadequate to meet future challenges associated with investments required for infrastructure development, service improvements and social upliftment.
Need for different approach
The longer term future of tea and rubber is uncertain, and foreign remittances may not be long lasting even once the COVID-19 pandemic subsides. Sri Lanka needs a different approach and lateral thinking on economic policies if it is to free itself from debt and generate enough revenue to service its infrastructure development and service improvements. Besides the Port City project, there is no other innovative project that has been presented for discussion that would address the future economic needs of the country. While the management of its politics has left much room for improvement and some policy aspects may need adjustment, the fact remains that there is nothing else on the table to compare it with.
While it is not a critique of the bill itself, as the writer feels that should be left to the politicians as well as experts who are more competent to do so, there are a few questions pertaining to the clauses 64 and 65 in the agreement that needs some clarification as there appears to be a legal provision in the bill to extend the authority of the Port Commission to land associated with projects approved by the Commission, beyond the reclaimed land area that constitutes the Port City. In addition, these clauses appear to make the Board of Investments (BOI) irrelevant and an unnecessary entity as all its activities, past, present and future could easily be managed by the Port Commission.
A. Firstly, what does section 65. (1) mean? It says, “from and after the date of commencement of this Act, all land comprising the Area of Authority of the Colombo Port City, shall be vested with the Commission in the manner set out in subsection (3)”. Subsection (3) reads as follows. “For the avoidance of doubt, it is hereby stated that on the coming into operation of this Act, the President may, issue a Land Grant under the Crown Lands Ordinance (Chapter 454) in the name of the Commission, in respect of all land comprising the Area of Authority of the Colombo Port City as set out in Schedule I to this Act.”
Lease
It is understood that President Sirisena by way of a gazette notification granted a land deed for the reclaimed land in favour of the UDA as mentioned by Presidents counsel Jayantha Weerasinghe at a recent press conference. The land given to the UDA on this grant apparently was leased out to the Chinese company by the UDA in 2016.
Is it to be understood that as per section 65, the present President is giving another grant of the same land to the Port Commission under section 65 when the land is owned by the UDA and leased to the Chinese company? This convoluted situation may not be accurate, and it would be good if the government could clarify this.
None of these land deeds have been registered as far as known and therefore no one has been able to peruse them and ascertain the status of the grants and deeds. No wonder the Public is confused. It is also understood that the gazette which contains the deed signed by President Sirisena has the new plan as per the tripartite agreement under Cadastral system. It would be helpful if these documents are made available to the public. If the above confusion could be cleared, this subsection and what is referred to in Section 65 of the gazette notification looks harmless and innocuous if it is read as it is without any reference to any other Section.
B. However, a question does arise as to what this Section (65) and Subsection (3) mean in effect?
Is it that only the reclaimed land area referred to as the Port City, will be vested with the Commission? If not, what other land?
Some confusion and doubt does occur when it is read in conjunction with Section 64 which reads as follows. Clause 64
(1) The Commission may, where it considers necessary to do so, as an interim measure, permit an authorised person to engage in business from a designated location in Sri Lanka, outside the Area of Authority of the Colombo Port City, as may be approved by the President or in the event that the subject of the Colombo Port City is assigned to a Minister, such Minister, for a period not exceeding five years from the date of commencement of this Act. Such business shall, for such period of five years be entitled to all the privileges accorded to, and be deemed for all purposes to be, a business situated within and engaged in business, in and from, the Area of Authority of the Colombo Port City.
(2) Where an authorised person has been permitted to engage in business from a designated location in Sri Lanka, outside the Area of Authority of the Colombo Port City in terms of subsection (1), such business shall be subject to the provisions of this Act and any regulations made hereunder.
This Section raises two questions
1. Would such a project have to be approved by the Authority, meaning, will it have to be a new project and not an existing project? Does this not virtually open any part of the country for such a project to be located for five years? If so, effectively, the Authority has islandwide authority for five years for approved projects. In this event, what is the role of the BOI, and why should projects seek approval from the BOI?
2. When this is read in conjunction with Section 65 and subsection (3) does it mean that not only the reclaimed land but also any land allocated for an approved project for five years under clause 64 could also be vested with the Authority for five years with President issuing a Land Grant under the Crown Lands Ordinance (Chapter 454) in the name of the Commission?
C. Section 65, subsection (2) reads as follows – “Where any deed of transfer, indenture of lease, agreement or other similar document has been executed in respect of any land situated within the Area of Authority of the Colombo Port City, prior to the date of commencement of this Act, by the Urban Development Authority, established under the Urban Development Authority Law, No. 41 of 1978, such deed of transfer, lease, agreement or other similar document shall, from and after the date of the commencement of this Act, be deemed for all purposes to be a document executed by the Commission, in terms of the provisions of this Act and be valid and effectual as if executed hereunder.”
The Port Commission Act has just been passed by the Parliament. In relation to this clause, besides the land that was leased to the Chinese company by the UDA in 2016, is it to be understood that there are projects approved by the UDA or any other body on land within the Area of the Authority? Is this clause to be understood as extending to projects already approved by the UDA, with some projects located outside the Port City precincts (as per Section 64) the benefits referred to in Section 65?
It would be useful if the government tables a list of such projects so approved and their operational locations as the country has a right to know which project, located where, is to benefit from terms in Section 65.
These clauses, their meaning and effects need clarification as confusion does arise about the extent of authority the Port Commission has over land outside the Port city itself, even if it’s for five years. The potential does exist for the Port Commission to approve investment projects with say the headquarters office located in the Port City, but actual projects located anywhere else in the country, and enjoying all privileges and benefits accorded to the project irrespective of where its operations are located. Theoretically, far-fetched it may be, the possibility exists for hundreds of foreign companies to have their projects approved by the Port Commission, with their operations located in any part of the country. The consequences of this possibility needs to be considered especially from the point of view of the impact on local farmers (if the projects are agriculture based) or industrialists who will not enjoy the benefits enjoyed by projects registered with the Port Commission.
Considering all of above, the extraordinary powers granted to the President of the country to make far reaching and binding decisions on what may turn out to be a sizeable component of the country’s economy could have the potential to be detrimental rather than beneficial to the long term interests of the country should the Presidency be in the hands of a person not entirely suitable to hold that office. Avenues for greater accountability of decisions made by the Port Commission and the President of the country have to be considered from this point of view.
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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