Features
Sumi Moonesinghe’s ‘Big Break’ in business in the Maharaja Organization
by Sumi Moonesinghe as narated to Savitri Rodrigo
I was due some long leave and Susil and I decided to come to Colombo on holiday. Since we had no home of our own at the time, we were warmly welcomed into the homes of our friends Sena Kiridena, a Director of J L Morison Son & Jones, as well as Dr. Seevali Ratwatte and his wife, Cuckoo. Susil and Anura (Bandaranaike) were both good friends with Sena.
Once we landed in Colombo, Susil’s rather large network of friends made sure there was no shortage of lunches, dinners and even teas in between because sometimes fitting in all the social engagements seemed impossible. One of these many dear friends was Killi, who, together with his brother Rajendram Maharaja (or Maha as everyone knew him), had built the Capital Maharaja Group into a formidable group of companies. Killi’s hospitality was unending — from treating us to gastronomic delights in great restaurants to plying us with beautiful gifts. Since I was already funding Ganga, Tara and Susil’s mother, plus managing the home fires, these luxuries were out of our reach on that single salary. For us, these gestures of warm hospitality and friendship therefore were real treats.
One night, while enjoying dinner with Killi at his home on Inner Flower Road with his girlfriend Canice, whom he eventually married, Killi said, “Sumi, why don’t you end your contract in Singapore and come back to work for us?” You could have heard my jaw drop, I was so surprised. But I pulled myself together and said, “But I’m only an electronics engineer, Killi You run a business and you’re asking me to join a business. I know nothing about commerce and industry.”
But then Susil looked at me, smiled and piped in: “Sumi, I can teach you business.” Like I stated, I always trusted Susil to do the right thing for me. I didn’t hesitate and before dinner was done, I agreed to join the Capital Maharaja Group.
This was definitely a turning point in my life – the point when I gave up my academic career and went into the world of commerce, a world I knew nothing about. The prospect didn’t scare me because Susil had promised to hold my hand and guide me. To me this was a strong pillar I could hold on to and move forward.
We returned to Singapore. My priority tasks were to end my contract and start packing up. My brother Ranjith who had also qualified as an engineer accompanied us on our return. We found him a job and delayed our departure until he was settled in.
When I finally handed in my resignation, it was accepted albeit with some sadness because the Singapore Polytechnic had been very happy with my performance in the two-and-a -half years I had been with them. They were also not expecting me to leave before my contract was over.
In the meantime, we also purchased a Peugeot 504, which was the car of choice for any Sri Lankan returning from a stint abroad. The Peugeot 504 had great resale value in Sri Lanka due to a certain amount of prestige attached to the brand as well. We now owned two cars – our Vauxhall Victor 2000 and the newly-acquired Peugeot 504. Susil and I had a moment of mirth about our vehicle acquisitions – in a Sri Lankan context, these two cars would label us back home as prosperous.
This was the second half of 1974 and Sri Lanka was still in a closed economy with imports being scarce. Under Mrs. Bandaranaike’s Government, the country had descended into an economic abyss with food shortages, a rationing environment leading to long queues for basic food, and a policy of ‘Produce or Perish’ being the clarion call. The cost of imports had spiralled and export earnings stagnant; this was exacerbated by a blend of Government mismanagement. Basic necessities were luxuries and knowing this, I remember packing the boots of both cars with plastic Tupperware, bottles and jars which you could hardly find in Sri Lanka.
In the meanwhile, Killi and his brother Maha floated Jones Overseas Limited as part of the Capital Maharaja Group, with a share capital of Rs. 10,000. They gave me a one-third stake in the company. I was appointed Managing Director of Jones Overseas Limited and at 30 years of age, probably the youngest to helm a company within a conglomerate.
Then the wheels began turning and sugar was on top of the agenda.
In January 1975, Susil went to see Mrs. Bandaranaike at the Prime Minister’s Office. He was in the waiting room when he overheard a conversation between her Secretary Dharmasiri Peiris and Mrs. Bandaranaike on the impending visit of the Australian Prime Minister. Dharmasiri suggested that Mrs. Bandaranaike ask the Australian PM for wheat, which was more urgent than sugar, even though sugar was in very short supply. Susil, in his wisdom, knew if there was a shortage of sugar, things wouldn’t bode well for the country. The populace would retaliate. He was at that office with a recipe that could sweeten the sourness that was now eating at the very core of the country’s existence.
Susil sat patiently in the foyer and was finally called in. Without beating about the bush, he said, “The country has a shortage of sugar and things are not boding well for the Government. I can arrange to bring down a representative from Robert Kuok’s office in Singapore to negotiate the purchase of sugar for Sri Lanka.” Whatever her faults, Mrs. Bandaranaike was a woman of action. She knew Susil spoke the truth and immediately agreed to his suggestion.
Now that we got the go-ahead, we quickly contacted Singapore and Robert Kuok sent his brother’s son-in-law Kenneth Yeo to Sri Lanka for negotiations. As Managing Director of Jones Overseas, I was to accompany Kenneth to the meetings that were scheduled with various officials.
Our first meeting was with the Food Commissioner Tom Pathmanathan who, under that Government, was tasked with the purchases of all essential commodities. After that meeting, he arranged for our next meeting with the Secretary of the Trade Ministry, Dr. Jayantha Kelegama, and Director of External Resources Austin Fernando. At all these discussions, Kenneth confirmed that he could supply the quantity of sugar that Sri Lanka required within a month. To the Sri Lankan team, this seemed like plucking fruit out of thin air and I could see they didn’t quite believe him.
In the current environment, this promise was a near impossibility. Loading the consignment alone would take 10 days at the minimum, in addition to the sailing time for a 10,000-tonne vessel which was way more than the month, Kenneth stated. All this information was completely new to me, but I sat there absorbing everything like a sponge.
When we got out of the office, I asked Kenneth how on earth he would meet this impossible deadline. He smiled and said, Being the largest sugar trader in this region, we have many vessels all around in the seas at any given time. All we have to do is divert one towards Sri Lanka.” That made sense to me. We were dealing with the world’s sugar kings after all.
Once we had got the agreement from the Government, the paperwork began. At that time, emails were unheard of and faxes were a thing of the future. We only worked with telexes. I pored over all the contracts, learned ship-loading terms, logistics and every related area in exports, commodities and shipping. Contracts of sale were finalized, with Kenneth Yeo and the Food Commissioner Tom Pathmanathan signing on the dotted line, concluding the sale of 10,000 metric tonnes of white sugar for a total value of USD 12.5 million.
This was the largest transaction the Capital Maharaja Group had made until then, and as one-third shareholder, I got a substantial amount of money as a result. For me, it was like winning a lottery.
Kenneth kept his promise. The sugar arrived at the Colombo Port on time and our first deal was a success.
My next task was at hand. As Managing Director of Jones Overseas I was to expand the Company’s purview in the import and distribution of other essential commodities – rice, flour and even milk powder. Our cold call to 15, Carpenter Street, while we were yet residing in Singapore, had borne fruit after all, because the very large commodity business Jones Overseas built up could only be attributed to the relationship we forged with the Kuok Brothers, specifically Robert Kuok, the ‘Sugar King’ of Asia.
After our very successful sugar deal, Robert Kuok invited Susil and me on an all-expenses-paid visit to Singapore. However, just before we left for Singapore, when we were returning from a visit to Susil’s cousin Dr. Ananda (Jacko) Jayatilleke in Kandy, I began feeling quite nauseous. Despite feeling ill, we made our habitual stop at my parents’ home and just as she saw me my mother immediately said, “You are pregnant Sumi. I can see it in your face. Don’t take any medicine for nausea. It’s a natural process.”
With my mother’s words ringing in my ears and Susil quite excited at the news, an appointment was made with Gynaecologist Professor Henry Nanayakkara. When we went at the allotted time of the appointment however, there were far too many patients waiting to see him. Patience is definitely not one of my virtues. I persuaded Susil to consult Dr. Siva Chinnathamby at Hewa Avenue, Colombo 7. When we met her, she examined me and said everything was fine.
Then I told her about my impending holiday in Singapore. She agreed to let me go but ordered a strict no-exertion holiday as I was yet in my first trimester. “There will be no walkabouts or shopping excursions,” she said strictly. “But I love window shopping and my walks on the quay with Susil,” I grumbled. She was not to be dissuaded and gave us both strict instructions.
When we got into Singapore, Robert Kuok had booked us into the Shangri-La and from the moment we landed, we were treated like royalty. A warm and hospitable man, his friendship extended to meeting his family – his lovely wife Poh-lin and the children who eventually went on to become CEOs of the various companies he owned. I also remember meeting Richard Liu, who was helming the sugar business. Richard and I struck up a strong friendship which would last throughout our lifetimes.
It was he who became my point of contact and my business sounding board, always on hand to hear me out and give me sound words of advice. In fact, in the first year of business, Jones Overseas sold 120,000 tonnes of sugar with the Kuoks winning every single tender floated by the Food Commissioner.
We were always on the lookout for opportunities to grow our commodity business. One of these was a tender announced by the FAO in Rome. The Kuoks wanted me to fly to Rome. I don’t remember if I told them about my pregnancy but, even though I was seven months pregnant, I wasn’t really showing. So I wore clothes a size larger and boarded the flight for Rome. The airline didn’t notice anything either.
In Rome, we stayed at the Excelsior Hotel on Via Venito, which was called the Legend of Rome. One of the city’s most iconic palaces, the hotel promised a truly Roman Emperor experience which, for Susil and me, was truly memorable. We won the tender and I was ecstatic.
(Excerpted from Sumi Moonesinghe’s recently published Memoirs)
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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