Features
President speaks again, Premadasa breaks silence again
by Rajan Philips
President Gotabaya Rajapaksa addressed the nation last Wednesday, yet again in his just over two-year long presidency. The nation was briefly spared of power cuts for the nationally televised state-of-the-country speech. The speech was 15 minutes long, shorter than his earlier ones, and was also short of worthwhile specifics. There was nothing consequential in the speech except his decision to seek IMF’s help to tide over the economic and debt hurdles that is daunting the country. By then everyone knew the government was going to the IMF for help, except, apparently, Nivard Cabraal, the Governor of the Central Bank.
Accountants are not supposed to be ideological, but Mr. Cabraal has been fancying himself as Sri Lanka’s economic oracle and envisioning a non-IMF way out of the national financial mess, to which he substantially contributed. Now that the government is going to the IMF, where will the Governor go? Do an about turn and join the delegation for IMF talks, or join Vasudeva Nanayakkara and leave the government?
The decision to seek IMF’s help is already one year too late, just like the decision to artificially sustain the rupee from falling against the dollar. We now learn that since December 2019, the current government has “squandered as much as USD 5,500 mn trying to prevent the depreciation of Rupee,” (The Island lead story on March 15). But the President continues to insist: “This crisis was not created by me,” as he did again in his speech. The senior appointments he made, especially to the Monetary Board, and the directions he gave officials based on harebrained outside advice, have brought the country to its current pathetic pass.
Sri Lanka has had foreign exchange problems since the 1960s but there was never a time when the country was going to face a trade off, or a triage, as it could be called in the current medical parlance, between paying off debt and importing food for its people, poor and rich. The situation was by no means as dire even in November 2019, when GR become President, as it is now, in the second year of his first term in office. So, it is a bit rich for the President to now say that he did not create any of this.
It is like his government’s sweetheart highway contractors saying that they did not create the poor soil conditions where a new bridge has to be built! They may have a point if they were given the job without a tender!! The President has no excuse. He should have known what he was bargaining for when he signed up for the job – giving up one citizenship for another, accepting his family’s nomination to be the country’s president, obtaining favourable court rulings that his citizenship paperwork was all in order, and getting voted in – as he constantly reminds everyone – by 6.9 million citizens. Now that he is coming up short in measuring up to the challenges he himself has aggravated, he cannot throw up his arms and say – I did not create them.
Snappy Politics
There was someone else raising his arms for recognition in Colombo last week. It was Sajith Premadasa, the Leader of the Samagi Jana Balawegaya and the Leader of the Opposition in parliament. SP broke his periodical silence in front of the Presidential Secretariat the day before the President made his periodical speech. Carried away by the enthusiasm of his supporters protesting against the government, Mr. Premadasa called for “a snap presidential election with the consent of all political parties,” as the “only way out for the country.” The Leader of the Opposition should know his Constitution. There is no provision for a ‘snap presidential election,’ no matter how much consent there is among all political parties.
Dr. Nihal Jayawickrama has again written spelling out the constitutional provisions pertaining to the timing of presidential elections. It is a shame that after more than 40 years of the presidential system, senior political leaders including presidential aspirants are not familiar with the rules governing the timing of presidential and parliamentary elections. The next presidential election is due when Gotabaya Rajapaksa completes his five year term. He can call an election before his five year term is over only if he is running for office for a second term, not otherwise. Even then an earlier election can be called only after the expiry of four years from the last election in November 2019. That means there cannot be a presidential election, snappy or otherwise, before November 2023.
Similarly, the next parliamentary election is due after the five year term of the current parliament is over in August 2025. The President can dissolve Parliament before August 2025, but only after March 2023, thanks to the 19th Amendment. Under the same amendment, Parliament by resolution can request the President to dissolve parliament. But the SLPP is not going to support an early dissolution of parliament, nor is the President going to be in any hurry to dissolve parliament any time after March 2023. So, how is Sajith Premadasa, the SJB, the JVP or any other opposition party going to precipitate an early parliamentary election under the existing constitutional provisions?
Put another way, an opposition party calling for a snap election in 2022 is a vacuous bluster that is not going to trouble the government in any way, nor is it going to contribute to easing the real-time burdens of the people. In addition to calling for snap elections, Mr. Premadasa is also demanding the present government hand over power to SJB, because the SJB has “able people who could deal with the present economic crisis,” and that the SJB has lined up “three Middle Eastern nations (who) had already promised to provide oil at concessionary rates to a future SJB government.”
This kind of rhetoric was quite common before 1977 when the country was having a parliamentary system of government. There was to be even rice from the moon after the 1970 election. But frequent elections and government turnovers did not result in significant beneficial changes either immediately or in the long term. This was one of the reasons behind the advocacy for a presidential system. That (the presidential cure) has proven to be worse than whatever disease that was associated with the parliamentary system. Where do we go from here?
Empowering Parliament
The predicaments are many. It is virtually impossible under the current system to snap governments out of power and let an opposition party take power instantly. What is also unique to the current situation is that a government and a President who are not even halfway through their mandates have exhausted whatever little usefulness they ever had, and have become themselves burdens on the country. So, it is logical and compulsive for people to protest against the government, but political leaders, while they should be in the forefront of protests, should know better when they bluster about snap elections and power transfers which are never going to happen. They should use protests to empower parliament to play its constitutional role even under the presidential system.
Even the project of abolishing the presidential system that shaped and defined opposition politics from the day JRJ’s constitution came into force, would now seem to have run its course. Its high-point was the 2014-2015 presidential election campaign and the victory of the common-opposition abolition candidate, whose betrayal eventually became the low point of the abolition project. What was the determining dynamic in the 2014-15 election, is hardly an electoral issue now given the current basic needs and concerns of the people. The presidential system may eventually be drastically modified or substantially abolished, but that is not the top-of-mind issue for most people.
Again, it will be up to parliament to make it happen with or without a referendum. Not this parliament, may not be even the next parliament, but certainly a future parliament. It can be a routine shedding of the executive without unnecessary political hullabaloo. For now, the current parliament, although dominated by the SLPP majority, can and must play a positively aggressive role in identifying priorities and pressuring the Cabinet and the President to act on them until their intended outcomes are achieved.
In his speech, the President seemed emphatic when he said, “I urge the Cabinet, the Parliament and public officials to work together as a team to achieve our desired goal of providing a better country for our children with a great commitment.” How can the President urge parliament to work together with the government unless he is prepared to tolerate dissent within government and to reach out to opposition MPs and build consensus on actions that are urgently needed now?
Equally, if the opposition parties have ideas about possible solutions, why should they be not working towards building consensus within parliament and exerting pressure on the executive? If Sajith Premadasa has in his Party, as he claims, “able people who could deal with the present economic crisis,” and if the SJB has obtained promises from “three Middle Eastern nations … to provide oil at concessionary rates,” why cannot they be used now, through the current parliament? SP and the SJB can claim all the credit for doing so, and they will be duly rewarded at the next election whichever it might be and whenever it comes.
The protests are having their effects and they also seem to be forestalling the government’s alternative recourse to using its coercive powers. Even frequent speeches by the President are welcome, because, to modify what Jayaprakash Narayan, the doughty Indian fighter against Indira Gandhi’s Emergency Rule, once said – political speeches can be means of escape from military action. So let there be more speeches by the President. Let him deliver them in Parliament, and stay around to listen to MPs criticize his speeches. That he will keep the Colonel away from his Generals. There are also growing external deterrents to internal repression, thanks, inadvertently, to Vladimir Putin.
The Russian President, when he embarked on his misadventure in Ukraine, may not have realized that his action will trigger a remaking of the world in quite the opposite way from he would have wanted it to be. There is now a new global weapon, the weapon of sanctions, that has transcended the earlier limits of state-to-state interactions and can be applied against anyone, anywhere, and not only by states but also by private citizens and corporations.
Freezing bank accounts that proved to be the ultimate tool in ending the trucker protest in Canada, has now become the common weapon against Russia. The International Criminal Court that few people took note of has become a forum of interest, inadvertently thanks to Putin. The positive and negative ramifications of these development may not be readily apparent now. But their relevance and power as a deterrent against authoritarianism cannot be mistaken. And the government of Sri Lanka cannot be unaware of it.
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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