Features
March Troubles Beckon as White Vans Return
by Rajan Philips
The SLPP’s election fireworks in Anuradhapura may have perished instantly in the Sacred City’s ancient lakes. But political moves and counter moves are emerging independent and regardless of local government elections being held or not held in the near future. New developments are being reported both within the governing (SLPP/SLPFA) alliance and outside it, as well as independent of the government and on behalf of the government. There are four potentially significant developments that have been and are being reported in the media:
1) Shifting political alliances both within the governing alliance and among opposition parties.
2) An ‘all-party’ initiative in parliament to persuade the government to take steps for restructuring debt payments to tide over the country’s critical foreign exchange shortage.
3) The sudden and shocking return of White Vans in Colombo even as the government is trying to improve its human rights image in time for the March UNHRC sessions in Geneva, and while the Catholic Church is threatening to ‘go global’ in its search for justice for the victims of 2019 Easter Sunday bombings.
4) Foreign Minister GL Pieris’s unusually expansive interview to The Indian Express, during his recent visit to India, and his exclusive interview with S. Venkat Narayan, Sunday Island’s Special Correspondent in New Delhi.
Shifting Political Alliances
On Thursday, February 17, the Daily Mirror reported what would appear to be very consequential shifts occurring within the political alliances that underpin the current composition of MPs in parliament. According to the Daily Mirror, twelve of the political parties who are now part of the SLPP/SLPFA alliance and all of whom were left out of the of SLPPs’ family rally in Anuradhapura, are expected to announce in early March the formation of a new alliance, while remaining part of the SLPP-led government.
The leading lights of the new alliance will be Ministers Wimal Weerawansa, Udaya Gammanpila and Vasudeva Nanayakkara, as well as the Chairmen of the three crucial parliamentary committees – Tissa Vitarana (Committee on Public Accounts – COPA), Charitha Hearth (Committee on Public Expenditure – COPE) and Anura Priyadarshana Yapa (Committee on Public Finance – COPF). The new alliance is expected to include a few SLFPers as well, two of whom are also committee chairs.
What will the group’s ministerial troika (Wimal/Gamanpila/Vasu) do? Will they quit cabinet, or stay on as ministers until the President shows them the door? Giving up their cabinet positions may mitigate their political culpability until now, while getting fired will not improve their already tarnished political credibility for the future.
The formation of this alliance will not result in the government losing its current parliamentary majority, but it could take away the government’s two-thirds majority which will be required to effect constitutional changes. The President and the SLPP could just ignore the group, forego the craving for two-thirds majority, and give up on going ahead with constitutional changes. That in itself will be a positive outcome for the country. The country will be spared the agony of going through an ‘organic’ constitution after the disaster over organic fertilizer!
The new alliance could also bring pressure on the President and the government to undertake basic remedial measures that are desperately needed to tide over the country’s current financial and food crises. But there is nothing automatic about the effectiveness of this group in influencing policy or changing government direction. And its effectiveness will be limited unless the group is prepared to work with opposition MPs and parties, as well as more constructive SLPP MPs, on specific issues that are now critical to the country.
Principled cross-floor collaboration can serve two purposes. One, acting as the legislative branch of government, parliament could take independent positions on critical issues to countermand mistaken presidential actions and provide alternative routes for the country’s government. As a consequence of this, parliament can establish its constitutional role in the presidential system without being a mere rubber stamp to the president.
Many have commented on President (G) Rajapaksa’s rootlessness in political parties as a source of weakness for his presidency. Conversely, it could be argued that the deep rootedness of previous presidents in their parties (except Sirisena, who was neither here nor there as President) was a source of weakness for the legislative branch. Shouldn’t parliament use the present opportunity to restore its constitutional role and function?
The Daily Mirror news story also reveals shifting alliances within the opposition in parliament. Of special note are reported discussions involving Champika Ranawaka, UNP Leader Ranil Wickremesinghe and parliamentarian Kumara Welgama. A coming together of upstart ambition and decadent frustrations, to paraphrase the inimitable turn of phrase of Doric de Souza! Where and how far this convergence will carry, it is not worth a second of speculation. What is pertinent is that Champika’s overtures to Ranil are reportedly the result of Sajith Premadasa’s failure to respond to Mr. Ranawaka’s request for deputy leadership in the SJB.
Mr. Ranawaka apparently is not the only one feeling unrequited in the SJB. “Minority parties” affiliated with the SJB are also reportedly disappointed that Mr. Premadasa is not heeding their calls for formalizing a broad alliance where ‘minority parties’ can maintain their identities. If Sajith Premadasa is reluctant to go into broad alliances, it may be due to his own insecurity and there are also reports about other prominent and young UNP-defectors who too are not very pleased with the leadership and the insulated inner circles of Premadasa the Younger. But I am trying to get to a different point here.
And that is about what seems to be a shared reluctance among Gotabaya/Basil Rajapaksa (SLPP), Sajith Premadasa (SJB) and Anura Kumara Dissanayake (JVP/NPP) to enter broad alliances with other parties. The reluctance might be due to different reasons – arrogance and not having to answer to anyone (Gotabaya/Basil), insecurity (Sajith), and – call it – progressive puritanism (JVP/NPP). But the effect of this shared reluctance would be a major shift in post-presidential electoral politics that needs to be watched as the electoral dynamic unfolds over the next three years. The past alliance champions – Mahinda Rajapaksa, Ranil Wickremesinghe and Maithripala Sirisena are now spent forces with little consequence.
National Unity over National Debt
There is nothing more serious than the national debt burden, and its aggravation of foreign exchange shortages and import capacity limitations. There have been suggestions for negotiating debt payments and calling on the IMF for help. But the government and the Central Bank have done nothing about either suggestion. In the absence of government action, a group of government and opposition MPs have been putting their heads together to urge the government to act promptly on negotiating with the country’s creditors and for approaching the IMF.
TNA’s MA Sumanthiran has been the convenor of these discussions, the second of which was attended by R Sampanthan (TNA), Sajith Premadasa, Dr Harsha de Silva and Eran Wickremaratne (SJB), Rauf Hakim (SLMC), Mano Ganesan (TPA), , Shanakiyan Rasamanikam (TNA), and from the ‘government side’ Charitha Herath (COPE Chair), Tissa Vitarana (COPA Chair) and Anura Priyadarshana Yapa (COPF Chair). Former Speaker Karu Jayasuriya attended the second meeting. The first meeting was also attended by Ranil Wickremesinghe and Kabir Hashim (UNP), and Dr Harini Amarasuriya (JVP/NPP).
As reported in the Sunday Island last week, Mr. Sumanthiran has indicated there is agreement in the group that the government should commence renegotiating with creditors before running out of existing foreign reserves and reschedule loan settlements. The group recognized renegotiation as a multi-step process, which could be guided by the experiences of other countries such as Argentina and Uruguay. The purpose of debt negotiations would be to ensure the continuous flow of essential goods and the continued protection of the poor and vulnerable social groups.
Again, there is no indication how far this initiative will go. But this is an instance and an opportunity for parliament to assert itself and literally compensate for the lack of political will on the part of the President and the Minister of Finance. There is another angle to this initiative given the convenor-role of Sumanthiran. It underpins the unifying role of national debt and everything ‘economic’. It also speaks to Mr. Sumanthiran’s role as a parliamentarian and a constitutional lawyer, and his abilities to work across party lines and ethnic boundaries on matters that are of importance to all Sri Lankans. I cannot think of a Tamil parliamentarian before him who would have played such a national role so well while being inflexibly principled on matters affecting the rights and expectations of Tamils as Sri Lankan citizens.
White Vans Return
The most shocking development last week was the return of White Vans after nearly seven years. In the first reported instance, goons in a white van attacked the house of TV journalist Chamuditha Samarawickrema with rocks and faeces and drove away with impunity. In the second instance, Catholic civic activist Shehan Malaka Gamage was arrested and taken way by CID men who too had arrived in a white van. Gamage managed to livestream the arrest on Facebook, calling it abduction, and the publicity forced the CID to produce him in court where the Magistrate released him om bail.
Gamage’s arrest stirred the ire of Cardinal Malcolm Ranjith, who endorsed Gamage’s description that what was done to him was abduction. The Cardinal went on to call it “an uncivilised, thuggish act that should have no place in a democracy.” The Cardinal lambasted the Attorney General who authorized the ‘arrest,’ reminding him that the country’s Attorney General is “a public servant and not a tool of politicians.” According to media reports, the Cardinal also condemned the attack on the residence of journalist Chamuditha Samarawickrama, and “expressed his disbelief that the government would resort to such tactics with the United Nations Human Rights Council (UNHRC) session just days away.”
It is not only the UNHRC that the government will have to worry about for this year’s month of March. Cardinal Ranjith has put the government on notice that Sri Lanka’s Catholic Church is working with the Vatican to help find justice for the victims of the 2019 Easter bombings. The outspoken Cardinal has said that “if we cannot find a solution within the country, we will try going through international organizations.” And that “the government alone must take responsibility for that, because it is the government that has not paid an iota of attention to this.”
The return of the White Van a week after the release of Human Rights and Constitutional Lawyer Hejaaz Hizbullah might suggest that the SLPP operatives in the government do not know what they are doing. More sinisterly, the family, the SLPP and the government might be switching sides as they struggle to contain the continuing fallout from the Easter bombings. First they promised retributive justice to Catholics at the expense of the Muslims. Now the SLPP government might be trying to woo the Muslims and abandon the Catholics.
Playing one group against another never works and it always backfires. That has been the story of the entire Rajapaksa power trajectory – its slow rise, sudden peak and the rapid decline. Power not only corrupts and corrupts absolutely, but also comforts the futility of learning nothing and forgetting everything. Of all people, Prof. GL Pieris, easily the most erudite person to be in any Rajapaksa cabinet, gave a demonstration of this during his recent (February 6-8) visit to India.
India – a tried and examined pal
Foreign Minister GL Peiris visited his Indian counterpart Subramanyam Jaishankar in the first week of February. At the end of his visit, the Minister gave an interview to the Indian Express and to the Sunday Island’s Special Correspondent in New Delhi. The latter interview appeared in the Sunday Island last week – in the paper’s print and electronic editions but did not make the cut to the trendy online version. In the Sunday Island interview, Minister Pieris indicated that he had a better understanding of what the people of Jaffna need after spending three days in the peninsula, than any Tamil MP who, according to Pieris, is usually preoccupied with war crimes, which the Minister did not make it a point to deny as he usually does.
The key takeaway from the Sunday Island interview is his refutation of the claim (attributed to ex-Chief Minister CV Wigneswaran) that the proposed new constitution will remove the 13th Amendment and “convert Sri Lanka into a Unitary State instead of a Federal State.” The Minister called the assertion “irresponsible speculation” while not bothering to clarify to the Indian journalist that Sri Lanka is a constitutionally stipulated unitary state. He went on imply the need for patience till the Experts Committee releases its much awaited draft without indulging in “surmises and conjectures.”
In his Indian Express interview (which seems poorly transcribed and was reproduced in the Daily Mirror on February 14), the Minister was categorical that “the 13th Amendment is an integral a part of Sri Lanka’s Constitution of 1978.” Its “primary characteristic,” Pieris said “is a division of powers between the central authorities and the provincial councils.” He rightfully blamed the current suspension of the Provincial Council system on the previous government and the TNA for indefinitely postponing all provincial council elections through legislative inaction by parliament.
Quite apart from the 13th Amendment and Provincial Councils, the Indian Express interview is remarkable for its unusual expansiveness and its glowing allusions to the historical and currently “strategic” linkages between India and its “utmost isle” (Milton), including a potential “financial integration” of the two countries. The Minister described India as “a tried and examined pal that’s all the time there for us.” While admitting to the apparent competitiveness in Sri Lanka’s dealings with India and China, the Minister asserted that “there’s something very particular about Sri Lanka’s relationship with India … a particular high quality about it,” and deemed it “inconceivable that Sri Lanka would (have) allow(ed) our nation for use in opposition to India.”
The Minister identified different economic sectors as underpinning the evolving “strategic relationship” with India. They include ports and harbours, electrical energy, petroleum, tourism, prescription drugs, and of course all the financial credit help which sets up for the “integration of the financial system of India and Sri Lanka” for mutual benefits. If Ranil Wickremasinghe had said half as much, he would have been tattooed and crucified no sooner than he got off the plane at Katunayake. But Pieris may have the Teflon touch as a Rajapaksa Minister.
It could also be that whatever Minister Pieris says in India may be of little consequence for the President or the Prime Minister in Sr Lanka. But that is hardly the way for the government of Sri Lanka to manage its relationship with India. It can get counterproductive when it is apparent that the Sri Lankan government, or Minister Pieris on his own, is trying get New Delhi’s help to deal with UNHRC in Geneva. Besides the UNHRC, there is the EU, and now the Vatican and the whole Holy Catholic See to deal with. Connecting all the external dots internally is the return of the White Van to violate the streets and homes in Colombo. Either the government is inexplicably dumb, or it is assuming that it is cleverer than everyone else in dealing with human rights.
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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