Features
Normal New Year service after a pre-Christmas World Cup
by Rajan Philips
For auld lang syne, my dear,
for auld lang syne,
we’ll take a cup of kindness yet,
for auld lang syne.
It is not an exaggeration to say that 2022 ended on a high football note as more than half the world’s adult population watched the World Cup Final in Qatar on the penultimate Sunday of the year. Christmas came a week later on the last Sunday of 2022, giving extra time for the seasonal cup of kindness, more so in Argentina which won the World Cup beating France in a penalty shootout after two hours of riveting football. For a country that once (1890s) boasted per capita GDP higher than the US and had it thrice as high Japan in 1950, Argentina now has people living in poverty at 40% and inflation running at 100%. The country confounds economists, but its people have a World Cup of kindness to cheer for auld lang syne (for the sake of old times).
For Qatar and the Arab World, hosting the World Cup had other meanings. It turned out to be a most politically charged sporting event in recent times, with spectator support ranging from pro-Palestinian sympathies to anti-Iranian slogans in solidarity with the prolonged and widespread protests against the government in Iran. Not surprisingly, the western media took the old approach of Orientalism (Edward Said’s celebrated concept critiquing the West’s ‘patronizing’ and ‘essentializing’ approach to studying others) in treating the Arab world as one static and monolithic culture.
The western media was also a bit rich in cavilling at the apparent religious orthodoxy of the Middle East, forgetting the historical ties between football and churches in England and in Europe, and the continuing connections between them throughout South America. The media carping over the Qatar venue was eventually fizzled out by the level of football and the intensity of games that endured throughout the tournament. Pace the detractors, the opening ceremonies in Doha began with a recitation from the Quran, and the final awards ended with Lionel Messi being wrapped in a bisht, a traditional Arab robe by the Emir of Qatar.
Argentina’s victory was a personal accomplishment for Lionel Messi, the 34-year old, diminutive Argentinian football icon, who not only won the World Cup for the first time in five tries but also became the first player in history to score a goal at every stage of the tournament – the group games, the knockout round, quarter finals, semi finals, and the matchless final match. More mesmerizing than the goals he scored were the setups he magically conjured for his teammates to consummate. It was a Messi World Cup that drew the curtain on an otherwise messed up year for practically every country and for the world as whole.
Pope Francis is an Argentinian of Italian origin and a huge soccer fan, but did not watch the final match apparently sticking to his vow since 1990, not to watch sports on television. For his Christmas message from the Vatican, the Pope seemed to draw from Dante’s Inferno and the icy winds blown by the six wings of Satan half-buried in ice in the ninth circle of Hell reserved for traitors, and spoke of the “icy winds of war buffeting humanity.” He pleaded for an immediate end to the “senseless” war in Ukraine, agonized over conflicts in the Middle East and in Africa’s Sahel region, and ‘prayed’ for peace in Yemen and reconciliation in Iran and Myanmar.
2022 might officially be the last year of Covid-19 if the WHO goes ahead, as it has indicated earlier, and declares 2023 to be Covid-free. But the indication came before the current Covid convulsions in China, and the world can only keep its fingers crossed having gone through an almost identical experience in early 2019. The last four years of Covid-19 have been a unique experience to the current occupants of the planet. Even though the world is far better equipped now to handle another Covid chapter, if, God forbid, one were to open anew, the direct and indirect Covid aftermaths are everywhere. Hopefully, Covid-19 will not be a renewed problem in 2023 for Sri Lanka, which has quite a slate of other crises to contend with in the new year.
Sri Lanka’s Dilemmas
For Sri Lanka, 2022 drew to a close with Gotabaya Rajapaksa leaving for the US, leaving the problems he created in 2022 to be carried over to 2023. The New Year question for President Wickremesinghe is which comes first – economic recovery or national reconciliation? The two can go on parallel tracks but the President has enough detractors to pounce on him if there is some tangible progress on the reconciliation front by February 4, but no IMF agreement by that time. On the other hand, if the reconciliation initiative were to fail for whatever reason, that would be a huge setback and frustrated expectations will become a drag on the much needed economic takeoff.
Mr. Wickremesinghe, who has said that he has been keeping out of ‘party politics’ after becoming President, would be well advised to keep it that way in decisions over the timing and conduct of local government elections. He should leave it to the Election Commission to do its job and keep himself at a far enough distance from party campaigns for the local elections. He might, however, consider including referendum questions on the local election ballot to gauge the people’s opinion on nationally important matters.
On the economic front, it is somewhat puzzling why the President has not considered initiating an All-Party conversation on the economy, similar to the one on reconciliation. In fact, an APC on the economy should have come earlier and it had better be now rather than later, or, worse, never. The President could also expand the circle of consultation on the economy by including the Governor of the Central Bank and a cluster of economic experts.
The Opposition SJB has already called for a Parliamentary Select Committee to probe into the decision makings of the Gotabaya Administration that led to Sri Lanka’s uniquely ‘man made’ economic crisis. Others want to extend the probe to assess any potential impact of the Foreign Exchange Act No 12 of 2017 on the current forex crisis insofar as loopholes in the law have been used by exporters to stash away their forex earnings in foreign accounts without bringing them home.
Obviously, this is a ruse to entrap Ranil Wickremesinghe to share the blame equally with the Rajapaksas for the current crisis. That may be all right with the alleged Ranil-Rajapaksa duopoly, but it would be far fetched to blame the current crisis on the 2017 law. According to published data and dollar amounts, 65% of export incomes were repatriated until July 2021. The current repatriation rate is 23%, and the decline began after July 2021, due not so much to the 2017 law as to the more recent collapse of the rupee against the dollar. Hedging against adverse fluctuations in exchange rates was touted by the export community as one of the two main advantages of the 2017 law, the other being the access to foreign currency loans at currency-specific interest rates which are lower than interest rates for rupee loans.
As well, of the now estimated $53 billion export incomes currently stashed way, $35 billion has been attributed to quite a separate, and potentially illegal, process involving offshore accounts dating back all the way to 2007 – the very beginning of the Rajapaksa yugaya. Add to that all the anecdotal totals of all the other monies that have been spirited away throughout the yugaya, Sri Lanka should be able to find enough stashed away dollars to, at least partially, honour its debt payments and meet forex needs for essential imports.
The government’s focus should be on fighting corruption, perhaps specifically targeting corruption in foreign exchange, but without scaring away established exporters. Foreign currency earnings are not only required to boost the country’s balance of payments, but are also essential for the very survival of businesses as the CB Governor Nandalal Weerasinghe has recently warned. Already big exporters are jittery and are looking for greener pastures abroad even as the government, in its desperation for FDI, is ready to transform Colombo’s Port City into a bunkering harbour after previously selling it as the glittering Dubai of South Asia.
Crime and Corruption
One of the positive aspects of an IMF agreement would be the commitment to fight corruption, which will not be so with bilateral debt restructuring. Perhaps the President should ponder a third All-Party Conference on corruption along with his initiatives on the economy and reconciliation. He should also be more objective, if not careful, in selecting his personal advisers and avoid imposters who could bring national embarrassment to the President by exposing themselves to allegations of being ‘petophiles.’
What I am calling here as the petophile saga involving a presidential advisor and his hyperactive accusers is a rather minor symptom of the depraved conditions that Sri Lankan society is steadily sinking into. The peddling of drugs, attacks on university dons, rising murder rate, extortion, criminal cheating and breach of trust are among the graver symptoms of the island’s social malaise. Perpetrators of crimes are seldom apprehended or prosecuted, while the victims of criminals such as those vulnerable to substance abuse are targeted for harsh treatments and not rehabilitation.
The urgency of this situation was brought home before Christmas by the horrific killing of Dinesh Schaffter. Dayan Jayatilleka has called it “a surreal crime: the gruesome, cruel death of a decent, personable businessman belonging to a well-established family,” one that “illustrates the decay of Sri Lanka in the current period,” and whose “horror is bound to impact the image of the country and its business climate.” No one will disagree.
The onus is on the police to find the culprits, not to broadcast tendentious theories through inspired media leaks. There is growing suspicion that this case is on track to enter Sri Lanka’s long list of unsolved cold cases. If so, it would certainly be considered by UNHRC in Geneva as yet another addition to Sri Lanka’s “emblematic cases.” They are symptomatic of Sri Lanka’s social decay and its broken down law enforcement.
The United Nations Office on Drugs and Crimes (UNODC) lists drugs, crime and corruption in addition to terrorism as serious threats to peace, security, human rights and development both globally and within individual countries. Sri Lanka officially prides itself for eliminating terrorism, but has miles to go in combating drugs, crime and corruption. In fact, the incidence of drugs and crime has only increased in the years after terrorism was defeated. This aspect of the Sri Lankan crisis never features on the political radar unlike economic recovery or national reconciliation. There will be no sustainable economic recovery or national reconciliation so long as the national menaces of drugs, crime and corruption continue unabated.
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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