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Pension for politicians, for what service they do to the country?
Members of Parliament (MP) have to serve 10 years hereafter to qualify for pension as opposed to five years at present. (2022 Budget speech)
BY Dr. Sudath Gunasekara
While welcoming that policy decision of the Government, who can say that this is not another election ‘gundu’ to deceive the people aimed at the proposed Provincial Council Elections? If the Government was really honest and concerned about public good, what it should do is to abolish this joke immediately, particularly in view of the present hard times the country has fallen on, as Canada had done in 1995, without continuing an unwanted bonanza to trap politicians cunningly, used as a bait by party leaders, that bleed the nation.
The Mike Harris government eliminated MPPs’ pension plans following the 1995 provincial election. Even if it is allowed in exceptional cases like in Canada, a pension to a politician should be paid only after 65 years, in recognition of his or her distinguished service to the nation when they are disabled, to earn a living.
Why pay pensions to politicians at all, who volunteer and swear to serve the people at elections and on the contrary rob and destroy the entire nation after they come to power. It is to hoodwink.
Finance Minister Basil Rajapaksa in his Budget (2022) speech has proposed that MPs be eligible for a pension only after completing 10 years of continuous ‘service’. This too in my view is not warranted and justified at all, particularly in this country, where they come into politics for power and amass wealth and rob public assets and money in unethical ways. They don’t even declare their assets before nomination or even afterwards, deliberately, to enable themselves to justify their illegal earnings if someone questions their assets afterwards. What is more ludicrous is their claim to a pension, despite the enormous financial benefits and privileges afforded from the day they are elected, compared to what politicians in pre 70s got. For example, an MP those days got only an allowance of 500 rupees, a Junior Minister Rs 750 and a Minister Rs 1,000 a month. They were also not allocated official vehicles, duty-free vehicle permits, official residences in Colombo, other payments like sitting allowances or any other allowance or other perks like special allocations for seats, (in spite of the fact that none of these people have an electorate as they are only District MPs, which has made representative democracy a big farce).
My question is, under these circumstances, why pay a pension at all to any politician in this country. Because paying a pension to any politician is contrary to all basic principles, related to paying pensions, accepted all over the world. Because, originally people over 70 were paid a pension, who were unable to make a living, as a mark of gratitude for the continued and devoted service they rendered to the nation or a certain company. Those days it was public service and not self-service, as it is today.
The man behind the initiative called ‘The Old Age and Disability Bill’ was Otto von Bismarck of the German Empire. Germany was thus the first European country to establish a fully-fledged pensions scheme for workers aged 70 or above. The limit was lowered to 65 in June 1916.
In 1875, The American Express Co. created the first private pension plan in the US for the elderly and workers with disabilities. Early pension benefits were designed to pay out a relatively low percentage of the employee’s pay at retirement and were not designed to replace the employee’s full final income.
In Sri Lanka it was started by the colonial Government for the benefit of its aged employees, for the dedicated service they had rendered to the Empire. Subsequently it was extended to retired public servants who had completed 35 years of satisfactory service in public service. As such it was justifiable, as the only income of a man or a woman, who has devoted years in service to the nation, debarring any other job while one is engaged in public service, comes to an end the day he or she retires. But it should be noted that, to get that benefit they had to contribute a certain percentage monthly from their salary to which the Government contributed a certain percentage. Therefore, in fact, they are paid from a reserve fund maintained by the Government out of funds they have contributed throughout their service. What is more is that they have to complete 35 years of service to qualify for the pension. When someone retires prematurely the pension is frozen until he or she reaches the age of 55. This clearly shows that there is a very sound rationale behind paying a pension to a retired public servant and it is fully justified both rationally and ethically.
Now let us examine the rationale behind paying a pension to a politician in this country. Paying pensions to politicians started in 1977 by the JR Jayewardene Government. Curiously it was the first legal enactment of that so-called Democratic Socialist Government of JR, passed as a matter of priority, as if it was the most burning ‘public issue’ his government had to solve. Does this not show the degree of concern and commitment our politicians had towards the welfare of the people who elevated them to high positions by electing them with a 5/6th majority in 1977, hoping to get a better deal than from the previous government of Sirimavo Bandaranaike.
What is hilarious and despicable is that this piece of legislation marked the turning point in Sri Lankan political culture, when the interests of the politicians overtook those of the people in a country that inherited a rich legacy of public good enshrined in the Buddhist concept ‘Bahujana hitaya bahujana sukhaya’ (for the good of the many and for their happiness at large).
What is even more despicable is that it was awarded to all politicians who completed five years ‘service’ irrespective of whether they served the people or not. What was ludicrous was the payment of the pension to his or her spouse after the death of the MP. Further his family would get another pension or even more if his or her son or daughter had been appointed as the Private Secretary, Public Relations Officer or such, which has now become the norm, a tradition that had come to stay as a political privilege. Payment of pensions under this scheme was made with retrospective effect and it was payable even to politicians who served in the State Council, if they were living at that time, with arrears.
Only one man refused to accept this blood money, in the history of Parliament. He returned it to the Speaker. The man mentioned here was my good friend M.S. Themis, the third MP for Colombo Central in 1956. He was the first person and perhaps the only man to return it. I know it for certain as I was the one who prepared the cover letter to the Speaker.
This piece of legislation was also a complete violation of the Pension minute which nobody dared to challenge or even question up to date either in a court of law or Parliament, said to be the Supreme law-making body of the country.
Isn’t it interesting to note how our lawmakers make laws and for whose benefit they make them in this so-called supreme legislature of the country, expected to make laws for good governance for the good of the people and the good of the country at large?
JR did not stop at that. He did everything to enhance the fabulous benefit package to MPs with immediate effect. He dramatically increased salaries, increased the sitting allowance and official vehicles and duty-free vehicle permits were also provided, which they could sell in the open market and make a fabulous fortune. Official quarters in Colombo were also provided, whereas they had to be in Colombo only for eight days a month. Unlimited job permits for MPs to provide employment to their party supporters, monopoly of tavern licence, business permits and government contracts, nationalisation of land for a song, by Mrs B, through the establishment of Land Reform Commission (LRC); and government import permits; the sky was the limit to such privileges. Here I stop the list for brevity and lack of space. All this was done to buy over the MPs, to maintain the majority in Parliament, to embellish and consolidate JR’s dictatorial position as the Executive President which perhaps he thought was a lifetime job, but unfortunately not.
The same corrupt highway robbery still continues at increasing rates without being openly questioned or challenged by anyone in the ‘People’s Parliament’. So much so today the whole system of governance in this country has become a veritable national liability.
JR also increased the number of MPs in Parliament from 196 to 225 by introducing the National list, to provide a place in Parliament for their kith and kin and family friends, as backdoor MPs, bypassing elections, making Representative Parliament ‘Non-representative’, thereby rendering representative democracy a hilarious joke. Had it been reduced to the previous number, it would have saved billions for national development and reduced IMF and other foreign loan repayment burdens, thereby reducing the annual budget deficit and avoiding bankruptcy.
On top of this, JR also signed an agreement with Rajiv Gandhi, handing over the North and East, comprising 1/3 of the land of the country and 2/3 of the coastal belt, together with its maritime territory, as the Traditional Historical Homeland of the Tamil people.
What is more depressing is that this provincial council system has already wasted trillions of public funds for the upkeep of these superfluous new political establishments at no benefit to the country but only to the politicians, from 1987 to date. It is said that 85 percent of the national tax collection is spent on the upkeep of politicians and so-called public officials in this country, leaving only 15 percent to do everything else for over 21 million citizens. Meanwhile, lawlessness, corruption and international debt to the tune of US $ 56 billion, drags the country to the bottom of abject poverty and bankruptcy, forcing this once proud nation and second richest country in Asia, second only to Japan by 1948, to seek loans even from Bangladesh and Maldives.
This is the pathetic situation in to which this proud and rich nation, which gave Sterling loans even to the British Empire in the early 1950s, has been thrust, by our politicians who are supposed to have ruled this nation from 1948 up to date, a land further devastated by separatists Tamils and Muslims with their Tamil and Muslim dreamlands.
It is this kind of politicians, who have robbed the nation blind and continue to do so, who are responsible for making this country debt-ridden, while these parasitic and good-for-nothing governments continue to give fat pensions to MPs, extracting from the beggar’s bowl.
Against this backdrop, I strongly oppose a single cent being given to any politician, as a pension. In addition, I also suggest that all extraordinary benefits such as palatial official residences, official vehicles, security details and other benefits be withdrawn forthwith before the masses march in thousands and forcibly take over all these public assets as protest against what they have done to this country and the Sinhala nation over the past 73 years.
This includes all politicians including ex-Presidents and their rich widows. However, I am not against paying a pension to an honest politician like C.W.W Kannangara who devoted his entire life in service to the people and the country and who had done an indelible and memorable service to the nation, after passing a resolution in Parliament to that effect. That will definitely prevent self-seeking, wealth-mongering people in politics from receiving the pension, limiting it to men and women of outstanding character, dignity and commitment to the service of people, the noble vow of any honest politician.
Finally I propose first, the immediate abolition of the pension scheme to all politicians and second, appointment of a powerful Presidential or Public Commission to enquire into the illegal earnings of all politicians at all levels starting from 1977 up to date and confiscation of all assets proven illegal, both at home and abroad, such as ‘Pandora assets’. I propose that all that wealth be credited to the General Treasury Account so that people will get back all the wealth robbed by politicians at least from 1977 onwards, so that all those who aspire to be politicians in future will begin with a new political vision, opening the doors to a new political culture, setting a Sri Lankan model for the entire world and once again restore the ancient glory of the Sinhala nation.
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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