Features
From Jungle To International Five-Star
CONFESSIONS OF A GLOBAL GYPSY
Dr. Chandana (Chandi) Jayawardena DPhil
President – Chandi J. Associates Inc. Consulting, Canada
Founder & Administrator – Global Hospitality Forum
chandij@sympatico.ca
Prime Minister’s Village Re-awakening
I first met Ranasinghe Premadasa, the ninth prime minister of Sri Lanka, in 1981. He was a unique man loved by many supporters and hated by many critics. At that time, I was at the John Keells head office as the Manager – Operations of their hotel management and marketing services company. We also managed Temple Trees, the official residence of the Prime Minister and his family. Managing Temple Trees was a demanding contract.
I visited Temple Trees occasionally to support Fazal Izzadeen, a manager whom I transferred from Hotel Swanee to be in charge of the Temple Trees operation. Given the personal friendship my boss, Bobby Adams had with the Prime Minister, the Director – Operation had to be personally involved in managing this prestigious property. A perfectionist, Mr. Premadasa did not tolerate any sub-standard quality in maintenance, upkeep and cleanliness. Fazal did a great job in keeping the second family of Sri Lanka content with the services we provided, and more importantly, off our backs.
Unlike any of his predecessors, Ranasinghe Premadasa came from a family of modest means. Politically a self-made man, he was the first ‘commoner’ to become Prime Minister of Sri Lanka, breaking a 30-year tradition of the top leadership of the country being controlled by the high caste aristocracy coming from affluent families. Educated in a Christian missionary college in Colombo, Mr. Premadasa initially opted for a career as a journalist. He was a prolific writer and an electrifying orator in Sinhala. He had been keenly interested in neighbourhood welfare affairs since his youth. He became increasingly involved in municipal politics, initially as a member of the leftist, Ceylon Labour Party which led to his election to the Colombo Municipal Council at a young age of 26.
One day in early 1986, Bobby Adams entrusted a special duty to me. He called to say, “the Honourable Prime Minister will be staying at the Village, Habarana for five days, while he is busy with the 1986 Gam Udawa (Village Re-awakening) project in nearby Hingurakgoda. As I cannot be there this time, please look after him and his team of 50, including the security detail.”
Between 1979 and until his gruesome assassination by a suicide bomber while organizing a May Day demonstration in 1993, when he was the President of Sri Lanka, Mr. Premadasa led 15 annual Gam Udawa projects in different districts in rural Sri Lanka. The festivals were part of a massive, public housing and development program envisioned by him. The festivals were implemented with great efficiency, for the benefit of poor villagers, and predominantly in Sinhala Buddhist areas. Gam Udawa helped consolidate state ideologies at a time when its political and moral authority was being challenged by insurrectionary and separatist groups.
As the General Manager of the Lodge and the Village, hosting the Prime Minister for five-days was an interesting assignment. It enabled me to see the different facets of a unique personality of our times. Our team did the outdoor catering whenever the Prime Minister went to Hingurakgoda to see the progress of the project. At times, he was ruthless in dealing with the government engineers, project managers and private contractors.
He had no patience for project delays and inefficiencies. Nor did he hesitate to take senior bureaucrats to task, in public, in the presence of their subordinates. Quoting one of his idols, Jawaharlal Nehru (the first Prime Minister of India, whose autobiography was translated into Sinhala by Premadasa), he emphasised that, “I am only interested in work done and not in excuses!”
During the evening at the Village, the Prime Minister was in a more relaxed mood, and I saw a different side of his personality. At times he played football with the resort staff. He was athletic and fit. He had his dinner around 6:00 pm and then walked with our management team on the bund of the Habarana tank. His loyal and influential valet, Mohideen walked behind him with a radio playing Buddhist pirith chanting.
One early evening, during our walk, the Prime Minister looked at my wife who was pregnant, and asked her, “Did you have your dinner?” When she replied that we eat around 9:00 pm, the Prime Minister was unhappy. “In your condition, you should ideally be eating five hours before bed time.” he lectured her.Mr. Premadasa was a hard-working man who commenced his day around 4:00 am. After his early breakfast (usually string hoppers made with healthy, kurakkan (millet) and red rice flour, he would call the cabinet ministers and senior officials. They all knew his early routine and had gotten used to getting up very early to respond to the boss’s calls.
Mr. Premadasa was a big fan of the Singaporean Prime Minister, Lee Kuan Yew and his tough leadership style. He often spoke fondly about how effectively Lee Kuan Yew had developed Singapore to an unprecedented advanced level from a previously poor country which only obtained independence 14 years after Ceylon.On the last day of his visit, we were all waiting by the helipad of the Village Habarana to bid farewell to the Prime Minister. At 8:00 am sharp, he left his suite and said his goodbyes to managers and staff waiting in a long greeting line, before getting into an Air Force helicopter piloted by a squadron leader.
Mr. Premadasa was very observant. He paused for a moment and looking unhappy, picked a small, dry leaf from the floor of the helicopter. He then placed that leaf in the palm of the pilot without uttering a word. There was pin drop silence until the helicopter took off. “That’s something Lee Kuan Yew would have done too!” one of our managers told me.
My New Best Friend
From February 1, 1986, with the birth of our son, Marlon, my life changed. Our apartment in Habarana was Marlon’s first home. After my daily, lunch management meeting at the Village, I dropped in at our apartment to spend time with him. After playing a little, we both usually fell asleep for a short nap. When he started talking, Marlon commenced calling me his best friend.
In the later years, Marlon travelled to many countries with us and lived and studied in Iraq, United Kingdom, Sri Lanka, Guyana, Jamaica and Canada. He also lived in Vietnam for five years as a corporate executive of a large company. When he was in his mid-teens, I prompted him to pursue a career in hospitality, but he declined, saying that, “Thaththi, I never want to work as hard as you do in hotels!” Marlon was correct – hoteliering is certainly a demanding career, which often requires long hours of work, while sacrificing family life.
Leadership Change
I was saddened to hear that the Chairman of the John Keells Group, Mark Bostock had decided to retire. He had led the company for over 17 years, since 1969. Under his remarkable leadership, the John Keells Group evolved from a traditional company focusing on commodity and share broking to become the largest and most diverse group of companies in Sri Lanka. Today, John Keells Holdings, PLC (JKH) is Sri Lanka’s largest, listed conglomerate on the Colombo Stock Exchange. It is also the undisputed leader of the tourism and hospitality industries in the country.
Having been associated with the group’s chairman since 1972, initially through rugby football and then as a hotel manager, I was an admirer of Mark Bostock. I was extremely grateful to him for fully sponsoring my first overseas trip and training in London in 1979. In 1980 when I got married, Mark Bostock was an attesting witness. My personal friendship with him continued in 1984 when my family was invited to visit his family in their home in Royal Tunbridge Wells, Kent, for an overnight stay. Later in 1985, he supported re-hiring me to John Keells to manage their two largest hotels (The Lodge and The Village) as the General Manager.
An emotional farewell to a visionary leader
During his last visit to Habarana as the Chairman, he kindly accepted my invitation for Mrs. Bostock and him to plant a tree and address the employees. He shared his vision for the future, and said that, “My Deputy Chairman, David Blackler will certainly continue our good work, as the new Chairman. We have developed a strong team of Sri Lankan directors, who will take the company to a new level,” he assured.
Unfortunately, my first meeting with the new Chairman did not go well. David Blackler, who was also a Britisher like Mark Bostock, wanted some changes done immediately. He also told me that spending time as the President of two trade associations was a waste of time in my busy schedule. I was unhappy, but did not comment as I realized that with leadership change, emphasis may change. Managers need to go with the flow.
Being the General Manager of the Habarana Resort Complex was a rewarding job, but it was not overly challenging. I enjoyed the opportunity to do new things, develop an amazing team and the free rein that I had been given, up to that point. Yet, it was not fully aligned with my mid-term career plan, which was to gain five-star international management experience. I decided to keep my options as well as, my eyes open. The last memo/letter Mark Bostock sent me was motivating and I was very touched with his kind words.
Last memo/letter to me from Mark Bostock
Five-Star Offer
Mr. Steffan Pfeiffer, the General Manager of the 500-room five-star hotel, Galadari Meridien called me with another offer. It was the third time he was offering me a job in this hotel managed by the hotel company owned by Air France. “Chandana, after working here for three years, Meridien is transferring me as the General Manager of their hotel in Hong Kong. All other senior managers will continue, except four managers from one division – Food and Beverage, are leaving. I have identified you as the new lead for this division.” Steffan was trying to motivate me to make a career move.
Due to the popularity of nine food and beverage outlets and large banqueting facilities, the Food and Beverage Division of Galadari Meridian was generating over half the total revenue of the hotel. The offer was for me to be accountable for 230 employees including three expatriate managers, working in 13 departments, including kitchens.
The Food and Beverage Division of a large five-star hotel usually has four senior managers – Food & Beverage Manager, Executive Chef, Assistant Food & Beverage Manager, and the Banquet Manager. Two Frenchmen, who were the Food & Beverage Manager/Executive Assistant Manager and Executive Chef in the hotel opening team had left as well as the other two, who were senior Lankan hoteliers were about to leave Sri Lanka.
Steffan Pfeiffer offered me the opportunity to take over, and to re-organize the Food and Beverage Division. “I have recruited an excellent French Executive Chef to report to you. That is Chef Emile Castillo, who worked with me at Hotel Lanka Oberoi. You have a full control to fill the other two senior vacancies,” he explained. “I need you to meet the new Acting General Manager coming from the Meridien head office in Paris – Mr. Jean-Michel Varichon.”
“We will take you as the Acting Food & Beverage Manager and be confirmed in the position after six months, or once you have impressed the new General Manager, which I am sure that you will.” I agreed to join the Galadari Meridian on the day when Jean-Michel Varichon and Chef Emile Castillo were arriving – June 16, 1986. Steffan Pfeiffer said that he would work with me for two weeks prior to leaving for Hong Kong. I decided to leave John Keells to pursue a career with an international five-star hotel business.
Grading Time
On my last day at the Lodge and the Village, I decided to do something different. I had initiated many new things, but was not sure how the 18 managers in my teams viewed those. I developed a one-page questionnaire listing 12 general aspects of leadership and 18 other aspects we had initiated in 1985 and 1986. I requested the managers not to write their names on the questionnaires.
When I tabulated the results, I was happy to note that my team gave full marks for five elements – Planning, Delegation, Sales Promotion, Leadership Training and Statistical Analysis. The other side of the coin was that I was given poor marks for initiatives such as: Job Descriptions, Best Worker Awards, and surprisingly, the Management Trainee Program. Since 1986, every time I changed my job, I requested written feedback from the teams I managed.
Good Bye from the Lodge Team
David Blackler was surprised that I would leave the position of the General Manager of two of the best local hotels in the country to join a five-star hotel as an Acting Divisional Manager. Some of my friends were also surprised that I would leave the largest group of companies in the country, which was considered a great employer. At times, one has to follow the heart for career progress.
Over the next three years, until his retirement from John Keells in 1989, as a regular lunch customer of Colombo Club (one of the nine food and beverage outlets of Galadari Meridien), Mr David Blackler became very friendly with me. He often discussed my innovative initiatives at Galadari Meridien, especially when I mastered the art of show biz productions to increase hotel profits.
Progress with Le Meridien
Exciting new challenges awaiting me in Colombo…
Within six months of joining, I was confirmed as the Food & Beverage Manager of Galadari Meridien (from 1987, Le Meridien), and another six months later I was promoted Director of Food & Beverage, a job title unique at that time for any Lankan hotelier.
Le Meridien was very generous in developing my international hotel management career. During my two stints with them in 1980s and in 1990s, Le Meridien invested time and funds to send me as a Management Observer to their five-star hotels in Singapore, Changi Airport, Paris, Tours, London, Guadalupe, New Orleans, Toronto, and Dubai (the last two, on quality assurance mystery shopper assignments). They also sponsored my business management education with Institut International Meridien in France, where they developed promising divisional heads to become expatriate General Managers of five-star Le Meridien hotels.
In 1997, after gaining years of experience in managing seven hotels for different companies, I was chosen to convert the largest and the best hotel in the capital city of Jamaica, as Le Meridien Jamaica Pegasus Hotel. My team worked hard with the union to make this hotel become the first hotel in Americas to earn the ISO 9002 certification. In that rewarding assignment, on my request, the company sent two of Le Meridien experts to assist me with the opening – Jean-Michel Varichon from Paris and Chef Emile Castillo from New York. Small world!
In 1997, at the soft opening of Le Meridien Jamaica Pegasus Hotel. (L to R) Paddy Mitchell – MD of Le Meridien North America, John Issa – Chairman of Jamaica Pegasus Limited & SuperClubs, and P. J. Patterson – Prime Minister of Jamaica, listening to my welcome remarks.I will briefly narrate some related ‘fun’ stories in the future episodes of this column.
Dr. Chandana (Chandi) Jayawardena
has been an Executive Chef, Food & Beverage Director, Hotel GM, MD, VP, President, Chairman, Professor, Dean, Leadership Coach and Consultant. He has published 22 text books. This weekly column narrates ‘fun’ stories from his 50-year career in South Asia, the Middle East, Europe, South America, the Caribbean and North America, and his travels to 98 countries and assignments in 44 countries.
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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