Features
Current Trends in the Coconut Industry
by Dr. P. G. Punchihewa
“It’s an old and common saying: The coconut tree affords meat, drinks and cloth, true. I’ll also like to add – toddy, wine, vinegar, oil, milk and honey … all eatables, besides it affords other necessaries as mats, brooms, bottles, dishes and ropes” –so wrote Robert Knox the English sailor and trader in 1681 who spent 19 years in captivity in the island. .Long before Knox, coconut had played a vital role in the lives of the people of Sri Lanka. The first coconut plantation in the island, (cocopalm garden three yojanas in length according to Culavamsa )- may be even in the world-, was established during the reign of Aggabodhi I, He ruled from 571A.D to 604 A.D.
But Knox’s statement was the first which spelled out the many uses of the coconut tree in detail.
Coconut, a subsistence crop had to await the arrival of the colonial powers in the island, particularly the British, to change to a plantation crop. With the finding of new uses of coconut oil, in the manufacture of margarine, candles and soap in Europe, the demand for coconut oil increased by leaps and bounds. Accordingly all the major colonial powers started the cultivation of coconut in their colonies. The British in India and Sri Lanka, the Dutch in East Indies, French in Africa, and the Germans in the Pacific. The ‘Forward’ written by Sir W.H. Lever, the founder of Lever Brothers, to ‘Coconuts-the Consoles of the East’ published by Smith and Pape, speaks of the keen interest shown by the British in the cultivation of coconut as follows.
“I know of no field of tropical agriculture that is so promising and I do not think in the whole world there is a promise of so lucrative an investment of time and money as in this industry. The world is only just awakening to the value of coconut oil in the manufacturing of artificial butter of the highest quality and of the byproduct copra cake as a food for cattle.”
Accordingly, the colonial government encouraged the cultivation of coconut, particularly in the North -West of the island. “The rapid expansion of the coconut industry had begun in the late 1850s, but the pace had been accelerated in the 1860s .The acreage went up from about 250,000 in the 1860s to 850,000 in the first decade of the 20th century (K.M. De. Silva: A History Sri Lanka page 287).
Apart from encouraging the rapid expansion of the area under coconut, the English diverted the industry to processing of coconut products as well. The establishment of a crushing plant for milling copra into oil and copra meal commenced around 1830 and there had been regular shipments of oil from Ceylon to Europe. In 1853 Sri Lanka had exported, 33,900 gallons. (Samuel Baker: Eight Years in Ceylon: pg. 158.)
In 1855 soap making commenced and several kinds of soap were produced and exported. Sri Lanka was thus ahead of most of the coconut producing countries that were continuing to export only copra. The 19th century also saw Sri Lanka taking another important step in processing of coconut products.
Following the industrial revolution the need arose for a cheap ingredient for the ever increasing demand for candy among the working class in the UK. Coconut proved to be ideal. But the practice at the time to import the whole nut was cumbersome and expensive. Experiments had been carried out in the UK to find a solution. It was discovered that grated coconut meat heated on steam tables resulted in it not becoming rancid and the result was desiccated coconut. The first desiccated coconut factory was established at Dematagoda and by 1890 Sri Lanka had exported 6,000 tons of desiccated coconut. In 1900 it had gone up to 60,000 tons. At that time, Sri Lanka was the leading exporter of desiccated coconut.
Similarly, the first fiber mill was set up in the 19th century and in 1853, 2,380 tons of coir had been exported. Coconut thus came to be one of the three major exports of the island, the other two being tea and rubber.
Along with the plantation and industrial sectors coconut continued as a small holder crop serving mostly the needs of the local population. Coconut being an important food item of the people, with the increasing population, the consumption increased and by mid nineteen -fifties the export of kernel products, mainly desiccated coconut, coconut oil and copra decreased. A study done in 1969 for UN/ECAFE reported as follows “The fall in Ceylon’s exports of both copra and coconut oil in recent years particularly since 1964 is attributable to the progressive decline in exportable surpluses owing to a rising domestic consumption” (The Coconut Industry of Asia’ page 58) .
The downward trend continues .The exportable surplus as a percentage of production has varied from a high of 38.2% in 1985 to a low of 14.0%in 2007. (Coconut Statistics 2017 C.D.A page 11.)Product wise a volume of 56,144 MT coconut oil exported in 1985 declined to 6,310 in 2017 and 52,157 MT of desiccated coconut to 29,418 MT for the same period.
However there are a few , new kernel products –virgin coconut oil, coconut cream (milk) and powder and coconut water which are just making an entry into the export market (page 12 CDA).In 2017 the kernel product exports have brought in $312,316, 000.
It has been able to reach these levels of exports only due to a new trend in imports. To augment the local supplies Sri Lanka has been importing vegetable oils and fats for some time .But from 2005, it had increased by leaps and bounds. Till then imports were mainly for industrial purposes. But from 2005 large volumes of crude palm oil have been increasingly imported for edible purposes as well, reaching 121,706 MT in 2015.This is in addition to the import of small volumes of soya oil, sunflower oil and coconut oil. The total value of vegetable oils and fats imports in 2017 had been Rs. 29,662,257,394 of which the largest volume was for crude palm oil and palm oil products. (Table 23, 24 CDA.)It also cushioned the local nut price increase in order to satisfy the domestic consumers.
However as against the declining value of kernel products a redeeming factor is the enhanced export earnings from non-kernel products which has amounted to $ 283,872,000), in 2017compared to $94,989,000 in 2005 and $ 188,722,000 in 2010 .Products like coir pith and molded coir products for use in horticulture and increased volume of activated carbon have accounted for this enhanced export earnings.
There is a number of factors responsible for this huge drop in exports in kernel products. While the Philippines and Indonesia have vast extents brought under coconut, running into several millions of hectares, in Sri Lanka coconut acreage is shrinking due to urbanization, opening up of new industrial ventures, fragmentation of holdings, crop diversification, pests, diseases, and drought. From a peak of 1.15 million acres in 1962 the area under coconut decreased to 1.09 million acres in 2015.The study done by the Department of Census and Statistics in 2005 revealed that the aggregate extent under coconut crop at national level has declined by about 5% during the period from 1982-2002( page 4 of the study)
In 2006 the ‘Weligama Wilt’ was reported and it was estimated that 300,000 palms at the initial stages and more in repeated cycles had to be removed. March 16,2019 ,Daily Mirror reported of 96,000 coconut trees on 1,200 acres to be felled to construct the Bingiriya Free Trade Zone. Felling of coconut trees is continuing. And the production of coconut has remained static. Since 1980 Sri Lankan coconut production had exceeded 3,000 million nuts only few times. The average yield is around 2,500 nuts per acre per annum.
However it is noticed that in 2017 the domestic consumption has come down to 1,700 million nuts from a high of 2437 million nuts in 2008.In earlier years (2005) the domestic consumption was calculated at 95.52 fresh nuts and 1, 02 kg of coconut oil per head per annum approximately. (Coconut Statistics CDA 2005). But the 2017 report dumps fresh coconut consumption, coconut oil consumption, milk powder consumption and adjustment stocks all under domestic consumption. (Coconut Statistics 2017).With a provisional population of 21.44 million in 2017, it is surprising how the consumption had come down so drastically particularly when in the previous year it was reported that the domestic consumption was 2119 million nuts and the provisional population 21.20 million. It is worth studying this situation in the next few years as to why it happened.
Efforts to increase production and productivity have not had much effect. Sri Lanka has introduced only four high yielding varieties since 1960 the bulk coming from the two earlier varieties. The total number of seedlings issued from 2008 to 2017 is 386,555 (in thousands) ( Sri Lanka Coconut Statistics 2017). On the basis of 64 trees to an acre this should cover an area of more than 600,000 acres! By now some of them should be bearing. Obviously there is something wrong with the quality of seedlings or statistics!
From the above facts and figures, it is obvious that the future of the coconut industry in the island is not that rosy. Unless the industry and the government take corrective measures, an industry with so much of potential is on the path of no return. A study covering all the aspects of the industry and involving all stake holders is a necessity.
In the coconut industry there are many stake holders. Starting from coconut growers there are the processors of different products. Copra, desiccated coconut ,coconut oil, virgin coconut oil ,coconut water ,coconut cream, fiber products, coconut shell charcoal ,activated carbon and many others. They all operate in water tight compartments. There should be a forum chaired by the C.D.A where they could meet and discuss their sectoral and industry problems regularly.
Unlike in rubber or tea it is not possible to get actual and correct figures except for exports of coconut products. The total extent under coconut is taken from the agricultural census conducted once in ten years. By the time the figures are available nearly eleven to twelve years have lapsed and much change would have taken place on ground specially with felling of coconut trees for various activities. Therefore reliance on them for planning for the industry would naturally give a wrong picture.
In order to assess the current situation of the extent of land under coconut and production levels, the feasibility of conducting a regular random or sample survey under the direction of the Department of Census and Statistics should be considered. Field level officers of the Coconut Cultivation and Research Boards could be used for this survey.
Earlier domestic consumption was calculated on the basis of the household income and expenditure survey conducted by the Department of Census and Statistics. Now the basis of calculation is not provided with the overall figure.
Although recently exports of non-kernel products have increased in volume and value ultimately it too depends on the increased production of coconut. As such it should be the concern of processors and exporters of kernel as well as non-kernel products to get involved with projects to increase production .They have the capital and a drop in nut production may affect their outputs.
One last question is how long Sri Lanka is going to depend on import of vegetable oils to sustain the export of kernel products. Economically and health wise whether it is worth should draw the attention of the government and others concerned.
There is a more important aspect to it. In Sri Lanka coconut is important as a source to meet the daily requirement of nutrients particularly of the lower income groups. The study done in 2002 by the Department of Census and Statistics reveals that out of the daily requirement of the nutrients needed by the Sri Lankans 15%calories,5% of protein and 70% of fat are derived from the source of coconut.
“Dr. Mary G. Enig, a nutritionist/biochemist of international renown for her research on the nutritional aspects of fats and oil addressing the Asian and Pacific Coconut Community 36th annual session had the following to say.
“Recently published research has shown that natural coconut fat in the diet leads to a normalization of body lipids, protects against alcohol damage to the liver ,and improves the immune system’s anti-inflammatory response .Clearly there has been increasing recognition of health supporting functions of the fatty acids found in coconut. Now it can be recognized for another kind of functionality: the improvement of the health of mankind.” This was in 1999.
In 2006 ,Conrado S. Dayritt Professor Emeritus of Pharmacology ,College of Medicine ,University of the Philippines at the technical meeting of the Asian and Pacific Coconut Community stated that “the chemical properties and biologic actions that make coconut oil superior to other oils for cooking and health use ,viz chemical nature and stability ,absorbability, metabolism, physiologic, and pharmacologic actions, antimicrobial, immune-regulatory and anti-inflammatory.”
In this context, is it in the interest of the health of the people of Sri Lanka that we should continue to use imported vegetable oils in large quantities and barter a time tested precious, healthy oil for the sake of some additional dollars?
Our slogan should be increase the production and productivity of coconut, increase the domestic consumption of coconut and increase the coconut exports.
(From String of Archaeological sites in the East coast and other articles by Dr.P.G.Punchihewa Former Secretary Ministry of Coconut Industries and former Executive Director Asian and Pacific Coconut Community Jakarta.)
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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