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A People in-between East and West

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The Dutch Burghers in Sri Lanka:

by Prabhath de Silva

“We are a vanishing tribe in Sri Lanka. The first paternal ancestor of my father’s family who arrived in Sri Lanka in 1774 was Pieter Scharenguivel. He was a Quarter Master in the service of the United Dutch East India Company which ruled the maritime provinces of Sri Lanka from the middle of the 17th century to 1796. The Dutch Burgher identity and consciousness within the family I grew up was extremely significant. It played a role in the conversations, traditions, customs, food, perceptions and social interactions. During the British colonial rule, our community produced eminent surgeons, doctors, legal luminaries, judges, engineers, sportsmen, musicians , historians and artists etc.” , said Anne-Marie Scharenguivel, 65, a management accountant and a member of Sri Lanka’s tiny Dutch Burgher community of less than 30,000 people. The people known as ‘Dutch Burghers are descendants of the Europeans who arrived in Sri Lanka as servants of the United East India Company (Vereenigde Oostindische Compagnie- VOC) which ruled Sri Lanka’s maritime provinces from 1656 to 1796 or merchants and married native women or women who were children of mixed marriages between European men and native women.

Sri Lanka’s largest ethnic group is the Sinhalese, constituting 74.9% of the population of 21 million. The Sri Lankan Tamils, who live predominantly in the north and east of the island, are the largest ethnic minority group at 11.1% of Sri Lanka’s population. The Muslims are the third largest ethnic group at 9.3% of the population. Indian Tamils comprise 4.1% of Sri Lanka’s population. Smaller minority groups include the Malays, Burghers, Chetties (an originally trading community whose ancestors arrived from the southern parts of India) and the Veddahs -Sri Lanka’s indigenous people. Malays are descendants of Malay settlers brought by the Dutch colonial rulers.

 

The Dutch Connection with Sri Lanka

The Portuguese were the first European colonial power to arrive in Sri Lanka in 1505 when Sri Lanka had been divided into three kingdoms, namely the Kingdom of Kotte, Kingdom of Jaffna and the interior Kingdom of Kandy. Their presence in Sri Lanka’s maritime provinces between 1505 and 1656 CE, which began as an interaction of trade and commerce, later developed into a colonial rule in the maritime provinces (sans eastern coast from Trincomalee) downwards from 1597. Admiral Joris van Spilbergen (1568-1629), the Dutch circumnavigator, who commanded the fleet of ships’ Ram’, ‘Schaap’, and ‘Lam’ belonging to the Dutch company named Balthazar de Moucheron (a trading company that had been in existence before the establishment of the United East India Company -VOC in March 1602 ), landed in Batticaloa in Sri Lanka’s eastern coast on May 31, 1602, after a 12 month voyage at sea. Van Spilbergen met King Vimaladharmasuriya I, the King of Kandy (interior native kingdom of Sri Lanka), and negotiated the possibilities of trade in cinnamon and pepper and of providing military assistance to the King of Kandy to expel the Portuguese from the coastal regions of the Island. Van Spilbergen’s visit was the first Dutch visit to the Island. Spilbergen was followed by the visits of the fleets of Dutch ships commanded by the Dutch navigator, Sebald de Weert in November 1602, Jacob Cornelisz in 1603 and Marcellus de Boschouwer in 1612.

On May 23, 1638, the Treaty of 1638 between the Kingdom of Kandy and the United East India Company was signed by King Rajasinghe II for the Kingdom of Kandy and Adam Westerwold and William Jacobsz Coster, a commander and vice commander of the Dutch Naval Forces representing the United East India Company (VOC) in Batticaloa. The treaty secured the terms under which the two nations would cooperate in defending the Kandyan Kingdom from the Portuguese. The writer vividly remembers visiting the Dutch State Archives in The Hague in 1985 accompanied by a Dutch Burgher lady friend (64 at that time) settled down in that city, to see one of the original copies of this treaty handwritten in medieval Dutch. This friend whose father was a Ceylonese Dutch Burgher named Kriekenbeek and whose mother was a native Dutch lady, having left Ceylon (Sri Lanka) in 1948 at the age of 24 and having lived in The Netherlands for almost 37 years, was able to translate the contents of the Treaty for me from Dutch to English. I can also remember the courtesy and kindness extended to me (then a 25 year old lawyer) by the Staff of the Dutch State Archives.

The key points of the 1638 Treaty were (a) the Dutch should provide the King of Kandy with military and naval assistance to drive the Portuguese from the Island; (b) the Kandyan King should fully settle the military and naval expenditure incurred by the Dutch for onslaughts against the Portuguese by way of providing the Dutch with commodities such as cinnamon and pepper etc (c) the King of Kandy should grant the Dutch the monopoly of collecting spices and other commodities except elephants from the territories that constituted the Kingdom of Kandy; and (d) the Dutch should vacate the fortresses that would be captured from the Portuguese if the King would desire to take them over. Between 1640 and 1658 the Dutch completely expelled the Portuguese from the maritime provinces of Sri Lanka and ruled until 1796 when the British in turn replaced the Dutch and eventually took the whole island, including its holdout interior Kingdom of Kandy.

The maritime provinces of Sri Lanka came under the rule of Dutch East India Company after its armies defeated the Portuguese in a series of battles between 1640 and 1658. When the Kandyan King, Rajasinghe II demanded the Dutch to vacate and hand over the captured Portuguese Fortresses and territories, the Dutch presented a bill of military and naval expenditure involved in the battles to oust the Portuguese and asked the King to settle the bill first. But Rajasinghe II who was unable to settle the bill, would say that the Dutch had exaggerated the expenditure. The Dutch would maintain that they could hold the territories and fortresses captured from the Portuguese until the King Rajasinghe II and his successors would fully settle their bill of military and naval expenditure of onslaughts against the Portuguese. This was the legal foundation upon which the Dutch justified their occupation of the maritime provinces in the southern, western and northern coastal areas. Later they formulated another legal argument in their search for a legal basis for their rule in those regions.

They argued that Rajasinghe’s Treaty of 1638 with them was a nullity with regard to the Kingdom of Kotte as King Don Jao Dharmapala had gifted it to the King of Portugal in 1591 and the Portuguese had acquired the sovereignty of the Kingdom of Jaffna by conquest by war 1621, and as such Rajasinghe II, the King of Kandy had legal status (locus standi) to sign a treaty claiming the sovereignty over former territories of the Kingdom of Kotte (south western coastal areas of Sri Lanka) and the Kingdom of Jaffna (northern coastal areas). After a war between the Kingdom of Kandy and the forces of the United East India Company, the dispute over the sovereignty of the maritime provinces was permanently settled by the Treaty of 1766, by which the King of Kandy conceded the territorial control of the western, southern, northern and eastern coastal areas to the Dutch. The maritime provinces were ruled by the Dutch East India Company from 1656 to 1796. During their period, a canal system was developed, a judicial system was introduced with the Roman-Dutch Law. The Roman-Dutch Law still remains to be the residuary common law in civil matters, though much of it has been replaced with English Law by statutes during the British rule.

A number of Dutch words have become naturalized in the Sinhalese language . Among many such words are: Kamaraya in Sinhalese is derived from the Dutch word ‘Kamer’ for the room, Kanthoruwa in Sinhalese for office is derived from the Dutch word ‘Kantoor” for office, ‘ boodalaya’ in Sinhalese is derived from the Dutch word ‘Boedel’ for the estate of a deceased person, ‘Kakkussiya” in Sinhalese for lavatory is derived from the Dutch word’ Kakhuis’. The British captured the maritime provinces of the Island in 1796. Among other legacies of the Dutch rule are Dutch forts and a few buildings preserved for posterity. The Dutch Burgher community in Sri Lanka is a living legacy of the Dutch period. When native feudal Chiefs ceded the sovereignty of the interior native Kandyan Kingdom to the British Empire by the Kandyan Convention of 1815, the whole Island came under the British rule. Sri Lanka gained independence from the British in1948.

 

Who are the Burghers and the Dutch Burghers?

The word ‘Burgher’ is derived from the Dutch word ‘Vrije Burgher ‘, meaning “free citizen” or “town dweller”. The Burghers in Sri Lanka are an Eurasian community of mixed origin, whose first paternal ancestors were European colonists (mainly from Portugal, The Netherlands and the UK) who had married native Sinhalese or Tamil women. The Portuguese men who opted to remain in Sri Lanka had married native Sinhalese or Tamil women because there were no Portuguese women in the Island. The children who were born in a marriage between the Portuguese colonists and native women in Portuguese colonies overseas were called Mesticos. The second and subsequent generations of Portuguese colonists who opted to remain in Sri Lanka preferred to marry the Mestico women and their second preference was the native women. The servants and soldiers of the Dutch East India who arrived in Sri Lanka were not only Dutch but belonged to other European nationalities too including German and French Protestants known as Huguenots, Scandinavian and Italian. Marriages between them and native women were less frequent with the passage of time.

The descendants of the European servants of the Dutch East India Company and Mestico women and native women ( Sinhalese and Tamil) became known as ‘Dutch Burghers’. In order to be considered as a Dutch Burgher, one’s father ought to have inherited an European family name from an European paternal ancestor who had come to Sri Lanka during the period Dutch East India Company ruled the maritime provinces of the Island. During the Dutch colonial period, the mother tongue or the lingua franca of the Dutch Burgher community in Sri Lanka was an Indo-Portuguese creole, though the Dutch Burghers later adopted English as their first language during the British colonial period.

 

Dutch Burghers during the British colonial rule in Sri Lanka

Although many portray British rule here as ‘exploitative’, of our country, they ignore the vast economic, social and educational developments that facilitated the transition from feudalism to capitalism and a parliamentary democracy. The contemporary progressive political trends in Britain with her social movements like utilitarianism, social, democratic and labour movements, too influenced colonial rule here. The British empire was an extension of British capitalism to the colonies including Ceylon. Lenin in his book “Colonialism: The Advanced Stage of Capitalism” presented a similar argument. Today, we beg for foreign investment. This is not a new phenomenon. During British colonial rule, British companies invested in the plantations and other sectors in Sri Lanka. These capitalists paid taxes to the British colonial government here on the profits they earned. Later parallel to the British and European capitalist class, an indigenous native entrepreneur class emerged. The colonial government managed the economy with its own tax revenue without borrowing from outside. The Dutch Burghers who were a sort of ‘people in between’ the west and the east were able to achieve eminent positions in the public service, medical profession, legal profession and judiciary during the British colonial period in Sri Lanka. They held a proportionately higher percentage of positions as clerks, engineers, surveyors, journalists, locomotive engine drivers and railway guards in the public service. Their presence was significant in the employment of mercantile sector. It was the eminent Dutch Burghers like Charles Ambrose Lorensz were the pioneer constitutionalists who agitated for more liberal and democratic constitutional reforms during the 19th century British colonial Sri Lanka.

 

The Dutch Burghers in Post -Independence Sri Lanka

Sri Lanka gained independence from the British in 1948 and inherited from the British a democratic form of government based on the Westminster parliamentary model. At the time of Independence, Sinhalese majority constituted 66% of Sri Lanka’s population and the Buddhists who were almost exclusively Sinhalese constituted 60% of the Sri Lanka’s population whilst the remaining 6% of the Sinhalese population were Christians. Sri Lanka’s ethno-religious and ethnic minorities ,at the time of independence constituted 34% of Sri Lanka’s population. Sri Lanka’s first Prime Minister, D. S. Senanayake, a Sinhalese Buddhist, was a pragmatic leader who did not want to upset the ethnic harmony prevalent at the time of Independence. He and his political party the United National Party formed coalition governments with the major Tamil and Muslim parties and formed the cabinet of ministers representing Sri Lanka’s majority Sinhalese Buddhist community and other ethno-linguistic and religious minorities.

He and his two immediate successors, Dudley Senanayake and Sir John Kotalawala after Senanayake’s resignation refused to accede to the demands of the Sinhalese Buddhist nationalists for making Sinhalese the only official language replacing English, making Buddhism the State religion and for immediate take over of Christian denominational schools by the State. The Sinhalese Buddhist nationalists approached Solomon West Ridgway Dias Bandaranaike, who had broke away from D. S. Senanayake’s United National Party and had formed a new political party named Sri Lanka Freedom Party. Bandaranaike promised to implement all these demands of the Sinhalese Buddhist nationalists in the event his party would come to power at the next General Election. Bandaranaike was a Sinhalese born to a highly anglicized Christian aristocratic family. Educated at Oxford (1919-1925), Bandaranaike was a Barrister-at-Law and an eloquent speaker at the Oxford Union. A few years after his return to the Island from Oxford, Bandaranaike adopted the national dress, learned the Sinhalese language and began to tread on a path of communal politics based on Sinhalese Buddhist nationalism.

In 1956, a coalition led by Bandaranaike’s on communal sentiments and slogans of the Sinhalese Buddhist nationalism and socialism, was elected to power and Bandaranaike became the Prime Minister. One of the first things his government hurriedly did was to enact an Official Language Act making Sinhalese the only official language disregarding the Tamil and English , and the demand for making both Sinhalese and Tamil as official languages put forward by the Tamil political parties and Marxist political parties were rejected. The enactment of this piece of legislation deprived the English educated intelligentsia of Tamils, Dutch Burghers and Sinhalese of public sector jobs unless they passed an examination to prove their proficiency in Sinhala language.

 

Bandaranaike who began to experience the initial destructive consequences of his short sighted policies ,could not live long to witness the long term consequence of the whirlwind of communal tensions he set in motion through his unwise initiatives.

In September 1959, Bandaranaike was assassinated by a Buddhist monk named Talduwe Somarama, a misguided instrument or a cat’s paw of a conspiracy by a group of Sinhalese Buddhists (led by a prominent Sinhalese Buddhist monk) who helped him come to power , but developed an enmity with him, when in power, Bandaranaike refused to help them form a shipping company. The enactment of Bandaranaike’s ‘Sinhala Only’ and the events that followed drastically changed the political landscape of Sri Lanka, with his SLFP’s rival, the UNP’s governments too pursuing the same policies when in power, resulting in communal riots of 1958, 1977 and 1983 disturbances and tensions culminating in a 30-year civil war. Mrs. Bandaranaike who became prime minister in 1960, pursued policies of her husband rigorously, and took over the denominational schools of which an overwhelming majority were Christian in 1961. This entailed further appeasing the demands of the Sinhalese Buddhist nationalists by withholding State grants and subsidies for such schools if they opted to remain private. As result only 51 Christian school out of hundreds could remain independent.

Christians, particularly Catholics considered the take over of their schools by the State a discriminatory blow. Mrs. Bandaranaike, elected to power again in 1970 with a two third majority in parliament, severed the constitutional links with the British monarch as the ceremonial head of the state and abolished right to appeal the decisions of the Supreme Court of Sri Lanka to the Judicial Committee of the Privy Council of the United Kingdom. Her government enacted a Republican constitution granting Buddhism the foremost place in the Sri Lankan State, casting a constitutional duty upon the State to protect and foster Buddhism. Her government went further to perpetuate the Sinhala Only policy of her late husband by making Sinhala the only official language in the Sri Lankan State by incorporating provisions for such status in the new constitution of 1972. History has shown that issues of race, caste, religion, language and blind political affiliations have always been exploited by the leaders, and that these machinations have not originated from the ordinary people or peasants. Innocent peasants may be misled, misguided and mobilized by the leaders to achieve their narrow self–serving interests and ambitions by exploiting ethnicity, religion, caste and language in the South Asian political context. The Dutch Burghers, having experienced anxieties and insecurities of their future prospects, opted to emigrate mainly to Australia.

(To be continued next week)



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The heart-friendly health minister

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Dr. Ramesh Pathirana

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.

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A LOVING TRIBUTE TO JESUIT FR. ALOYSIUS PIERIS ON HIS 90th BIRTHDAY

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Fr. Aloysius Pieris, SJ 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 on Nov. 23, 2019.

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.

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A fairy tale, success or debacle

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Ministers S. Iswaran and Malik Samarawickrama signing the joint statement to launch FTA negotiations. (Picture courtesy IPS)

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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