Features
A citizen’s understanding of the current economic crisis and the IMF programme
by Dhammike Amarasinghe
Synopsis
The current economic crisis is not something brought about solely by corruption in high places or some recent policy mistakes of the Gotabaya administration. While those matters certainly did exacerbate the situation, the crisis itself has been long coming.
Two features of our economic situation that needs to be noted are: 1. Government expenditure has been persistently in excess of its revenue, 2. Imports have also been persistently above exports. Both together indicate that persistently we have been living beyond our means. It is time to make corrections.
The immediate problem was the drying up of foreign exchange reserves resulting in our having to default our foreign debts and not being able to import essentials. The IMF programme is only a helping hand to get out of that crisis. We need to put our house in order by implementing the various action points we have agreed with the IMF to execute, while using the IMF money (and other donor assistance it might trigger)to meet part of our external fund needs as well as some part of domestic fund requirements, until we can again stand on our feet.
However, this ‘firefighting exercise’ will have to be followed up with a longer term reform agenda, if we are to set ourselves on the path to prosperity. Two items of the IMF programme that are not often highlighted are 1. the Social Safety Net for the impoverished and the anti-corruption agenda.
It is essential for all citizens to have a correct understanding of the current economic crisis and the programme of action agreed to with the IMF, because in the unprecedented crisis that we are steeped in, the solution of the problem or problems depends very much on citizen support – support, NOT for any individual or party, but for a course of action that is likely to lead to a solution. It is no time for political games. Emotional rhetoric has to be ignored. What is at stake is – without exaggeration – the future of our people including generations to come. And not whether some individual (that one may happen to dislike) will get credit or whether some party wins the next election. That would be an extremely foolish attitude. This is a make or break situation.
Educating the public on such issues is actually the responsibility of the expert. However I have not seen yet a comprehensive all-embracing survey of the current situation – from its beginnings, intended for the layman, written by any expert, What we have seen are expert analyses of particular aspects of the situation, not always fully understandable by the ordinary person. I am no expert. However, I shall try to set down my understanding of these matters, acquired from reading the relevant documents and the analyses of experts. (I intend to do this in Sinhala later) Some knowledge of the basics of economics acquired many years ago at the university did help. Assisting ones compatriots as best as one can, to understand the crisis and what needs doing to overcome it, is I think a civic duty. Experts are welcome to make any corrections necessary.
At the outset itself, I must say that the first point in my understanding of the current situation is that it has been long in coming, only accelerated by some incorrect policy decisions made by the Gotabaya administration. My understanding is also that although corruption in high places has exacerbated matters, it is not the root cause of the present malaise. I shall also try to show that corruption may not be limited to the stealing, misappropriation or misuse of public funds in various ways by the high-ups and others but also includes, according to some people, a certain feature of day to day normal commercial practice. I shall elaborate on this in due course.
The Immediate Problem
To take the immediate problem first, before going on to the root cause: that problem is our inability to repay our public debt (i.e the debt of the government and government entities) to various creditors, owing to the fact that we do not have the foreign exchange to make those payments. Apart from our inability to settle our foreign debt, the inadequacy of foreign exchange also resulted in our inability to import many essentials like medicine, some food items, fuel, and cooking gas – although the situation has now eased somewhat. We have survived so far only because of the helping hand given by our friendly neighbours. Why we came to such a pass is the root cause of the crisis that we need to explore at the end
The foreign debts are owed by us to (a) various muti-lateral agencies like the IMF, World Bank and ADB (b) various foreign governments such as those of India, China, Japan, Iran, Hungary and (c) to holders of bonds ( meaning acknowledgments of our borrowings) issued by the government and referred to as International Sovereign Bonds or ISBs). These are borrowings made in the international bond market. While the vast majority of these bond holders are foreign investors, there are some locals like local banks and funds like the EPF and ETF who also hold them. In addition, these locals have also lent to the government in local currency by way of Treasury Bills and Treasury Bonds. The Central Bank itself is a large holder of these Treasury Bills and Treasury Bonds. This matter of local creditors has complicated matters, as will be clarified later. Our total debts are in excess of US $ 50 billion (different figures are given from time to time based on differing definitions and categorizations but it is safe to say that it is over $ 50 billion, just to indicate its huge proportions).
By April last year (2022) the authorities belatedly recognized officially that we do not have sufficient foreign exchange to repay the loan installments and interest payments that were falling due. Realization of this dire situation should have dawned on those concerned much earlier, but for some unknown reason the authorities at the time fought shy of recognizing it. Anyway, in April last year, we officially declared to the world that we are unable to repay our external debt as it falls due and that we need to re-structure it. However, our repayments due to the multilateral organizations like the World Bank were exempted since the international practice is that such repayments are normally exempted from default declarations. Our debt repayments to foreign governments and ISB holders stand suspended at present.
IMF loan and IMF programme
We then applied to the IMF for a loan to enable us to get out of this situation, that is, to re-instate ourselves to a position that will enable us to again start repaying our debts ( referred to technically as ‘ regaining debt sustainability’) It is essential to understand this point well. The IMF facility was NOT meant to be a loan to develop the country. It was solely for the purpose of getting out of the hole that we had stupidly dug for ourselves, So people who are now shouting from public platforms ” We can’t develop the country through IMF loans” are simply talking through their non-existent hats! It was never meant to be so.
The strategy to be adapted is to request our creditors to agree to ‘re-structure’ our loans (to be explained) and for the IMF to lend us funds, partly to make essential external payments and partly to support the local budget, to tide over the period that it takes us to put our house in order. In order to lend funds to us, IMF insists on our following a mutually agreed course of action (usually referred to as ‘conditionalities’), to ensure that we will not again go and dig ourselves a pit and fall therein. Isn’t that reasonable?
To explain the ‘re-structuring of loans’: It can take one of three forms or some combination of them. 1. To allow the loan to be repaid over a longer period after an initial postponement 2. To reduce the rate of interest 3. To reduce the amount owed (referred to generally as a ‘hair cut’)
The IMF will give us this loan (roughly equivalent to US $ three billion) over a period of four years, in installments, depending on our implementing the agreed course of action. One of the key elements of this course of action is our undertaking to pursue negotiations with our creditors to re-structure our debt. We have to do that and not the IMF. Assurances have already been given by our creditors that they will co-operate with us in that process (India, China, Japan and some other countries and an ad-hoc organization of some of our International Sovereign Bond holders have been good enough to give those assurance to the IMF and to us. It must also be noted that our involvement with the IMF also gives these creditors an assurance about our conduct and our future capacity to re-pay them. In other words, our agreement with the IMF has given us some degree of respectability in the international financial scene.
IMF Conditionalities
It is necessary now to consider what the other IMF conditionalities are (We should remind ourselves that these conditionalities are what we have agreed to, in a lengthy process of negotiations that our authorities had with an IMF team. There would have been give and take during that process. For instance it transpired recently that at one point the IMF suggested that the tax free level of personal income be fixed at Rs. 43,000 per month, before the present Rs, 100,000 was finally agreed to. Admittedly of course our bargaining position was weak because of the mess we had created for ourselves.
As a background to the consideration of the conditionalities, it is necessary to first take note of a certain feature of our government’s budget. In the 2023 Budget (before the new tax proposals came into effect) the total government revenue was estimated at Rs. 3,456 billion while the total expenditure was to be Rs. 7,879 billion. So, there was a deficit of Rs. 4,422 billion (more than even the revenue itself). Even if we take out the capital expenditure in the budget estimates and take the recurrent expenditure only (salaries, pensions, other office expenditure, social welfare expenditure and debt servicing – i.e. without providing for building new hospitals, schools, roads etc.) it amounted to Rs.4,634 billion, still Rs,1,178 billion in excess of revenue. The payment of salaries, other administrative expenditure, pensions, and servicing of past debt alone accounted for 142% of the revenue. We must wonder how a country can run like that. Is it any wonder that we are in this mess and in debt?
At this point we need also to realize that there is not much scope for reduction of recurrent expenditure because the bulk of it consists of salaries, pensions, social welfare expenditure, repayment of debt to the banking system etc. (The World Bank in its latest ‘Sri Lanka Development Update 2023’ says: “At less than 20% of GDP, Sri Lanka’s expenditures are not high by international standards” thus underlining further the point that the solution to the budgetary problem lies more in the direction of revenue enhancement rather than in expenditure reduction, contrary to popular perceptions. However it is true that in a correct ordering of priorities we must refrain from completely ludicrous expenditures such as those on grandiose Independence celebrations, with tanks and all (!), in a country steeped in debt.
There was therefore a need for increasing government revenue. That is the rationale for increasing taxes. In addition to the income tax already imposed there will be a property tax and a gift and inheritance tax to be introduced by 2025, a tax that will fall on the top bracket of the really wealthy and not likely on wage earners and the majority of professionals. True enough, the new taxes are quite burdensome in the context of the general increase in the cost of living. It is hoped that the authorities will consider adjustments. However any such adjustments will be feasible only within the framework of various financial targets that the IMF programme has set, in order to achieve financial solvency within a reasonable time period.
For instance, it is required that the government Budget upgrades itself from its eternal deficit position (i.e expenditure exceeding revenue year after year resulting in the government getting more and more into debt) and attains a surplus of 0.8 % of GDP in 2024. increasing it to 2.3% in 2025 and beyond (this is what is called a primary surplus which does not take debt repayments into account) Any deviation from these carefully set down targets will only prolong the agony and condemn us to continue suffering in the long term.
Although as pointed out earlier there is not much scope for reducing government expenditure, the government is obliged under the IMF programme, at least to keep to the present level of expenditure. Thus it has some space only to make less than full compensation for inflation in respect of salaries and pensions. Anyway, in respect of other aspects of government administration most citizen are well aware that there is much scope for reducing inefficiencies, wastage and acts of corruption, leading not only to reductions in expenditure but to increased efficiency in delivery of services. In this connection one hopes that the government will embark on a full scale modernization and rationalization of its institutions and systems and procedures. In this endeavour it needs to allow for the introduction of digitization in a big way.
(To be continued)
(After a long public service career the writer retired in 1998 as Additional Secretary to President Chandrika Kumaratunga. He has served post-retirement as Chairman of the Sri Lanka Insurance Corporation and was an Advisor to President Mahinda Rajapaksa from 2005 to 2015)
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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