Features
A survival strategy amidst geopolitical rivalry
by Neville Ladduwahetty
During the course of his address, as Chair of the 55th Annual meeting of the Asian Development Bank, Sri Lanka’s President, Ranil Wickremesinghe, said, “As they say, in many of our countries, when the elephants fight, it is the grass that is crushed”. As far as Sri Lanka is concerned, its strategically significant location in the Indian Ocean makes it the turf for the rivalry between the QUAD made up of the United States, India, Japan and Australia on the one hand, and China on the other, to manifest itself. How Sri Lanka strategises its survival in such an environment is key not only to its immediate economic revival but also for all time.
The single most critical issue affecting Sri Lanka’s economic revival is debt, and therefore the need to restructure it. In this regard, the expectation is that the role played by the International Monetary Fund (IMF) backed up by the Extended Fund Facility of US$ 2.9 billion is expected to encourage the creditors to be more accommodative towards Sri Lanka, when addressing its debt crisis. This however is not an assured outcome. The President during his address announced the progress made with the IMF when he stated: “Towards this end we have already undertaken major macroeconomic policy reform measures. I am pleased to inform you that we have now reached a Staff Level agreement with the International Monetary Fund on a four-year program supported by the Extended Fund Facility. The program is aligned with the commitment of the Government to implement an ambitious and comprehensive package of reforms that will help restore the sustainability of our public finances, addressing external imbalances, and restarting our growth engine through structural reforms and improvements in governance”.
The question addressed below is the need for Sri Lanka to explore alternative strategies in the event Sri Lanka fails to reach a common agreement with the creditors despite the Staff-Level Agreement reached with the IMF, and Sri Lanka is left to its own devices to get back on a sustainable track. For these reasons, it is imperative that Sri Lanka engage earnestly in an alternative exercise to be prepared to meet unexpected exigencies that could arise from geopolitical rivalries.
IMF CONDITIONALITIES
Presented below is a press release issued following the Staff-Level Agreement reached with the IMF team. Parts of the “Key elements of the program” are highlighted to emphasise what it takes for Sri Lanka to comply with the 48-month arrangement under the Extended Fund Facility of about US $ 2.9 billion”
End-of-Mission press releases include statements of IMF staff teams that convey preliminary findings after a visit to a country. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF’s Executive Board for discussion and decision.
IMF staff and the Sri Lankan authorities have reached a staff-level agreement to support Sri Lanka’s economic policies with a 48-month arrangement under the Extended Fund Facility (EFF) of about US$2.9 billion.
The objectives of Sri Lanka’s new Fund-supported program are to restore macroeconomic stability and debt sustainability, while safeguarding financial stability, protecting the vulnerable, and stepping up structural reforms to address corruption vulnerabilities and unlock Sri Lanka’s growth potential.
Debt relief from Sri Lanka’s creditors and additional financing from multilateral partners will be required to help ensure debt sustainability and close financing gaps. Financing assurances to restore debt sustainability from Sri Lanka’s official creditors and making a good faith effort to reach a collaborative agreement with private creditors are crucial before the IMF can provide financial support to Sri Lanka.
Key elements of the program (emphasis mine) are:
RAISING FISCAL REVENUE TO SUPPORT FISCAL CONSOLIDATION.
Starting from one of the lowest revenue levels in the world, the program will implement major tax reforms. THESE REFORMS INCLUDE MAKING PERSONAL INCOME TAX MORE PROGRESSIVE AND BROADENING THE TAX BASE FOR CORPORATE INCOME TAX AND VAT. The program aims to reach a primary surplus of 2.3 percent of GDP by 2025.
INTRODUCING COST-RECOVERY BASED PRICING FOR FUEL AND ELECTRICITY
to minimize fiscal risks arising from state-owned enterprises. The team welcomed the authorities’ already announced substantial revenue measures and energy pricing reforms;
MITIGATING THE IMPACT OF THE CURRENT CRISIS ON THE POOR AND VULNERABLE BY RAISING SOCIAL SPENDING,
and improving the coverage and targeting of social safety net programs;
RESTORING PRICE STABILITY
through data-driven monetary policy action, fiscal consolidation, phasing out monetary financing, and stronger central bank autonomy that allow pursuing a flexible inflation targeting regime. A NEW CENTRAL BANK ACT IS A CORNERSTONE OF THIS STRATEGY;
REBUILDING FOREIGN RESERVES THROUGH RESTORING A MARKET-DETERMINED AND FLEXIBLE EXCHANGE RATE,
supported by the comprehensive policy package under the program;
Safeguarding financial stability by ensuring a healthy and adequately capitalized banking system, and by upgrading financial sector safety nets and regulatory standards with a revised Banking Act; and
REDUCING CORRUPTION VULNERABILITIES THROUGH IMPROVING FISCAL TRANSPARENCY AND PUBLIC FINANCIAL MANAGEMENT, INTRODUCING A STRONGER ANTI-CORRUPTION LEGAL FRAMEWORK, AND CONDUCTING AN IN-DEPTH GOVERNANCE DIAGNOSTIC, SUPPORTED BY IMF TECHNICAL ASSISTANCE.
These Key Elements of the program were known to the government at the time the Staff-Level Agreements was reached. It must then mean that the Sri Lankan government has agreed to commit itself to fulfilling the undertakings specified above to receive “about US$ 2.9 over 48 months to support its economic policies” notwithstanding the nature and range of its scope that amount to intrusion into the domestic affairs of a sovereign State. The other even more daunting challenge is reaching a common agreement on debt restructuring with countries such as Japan, India, China and private creditors. However, the fact that Sri Lanka is prepared to resolutely face such extreme challenges reflects the desperation Sri Lanka finds itself in at this juncture.
The question that arises and it is imperative that it is answered is: WHAT IF, after banking so heavily on support from the IMF for Sri Lanka’s economic revival, Sri Lank fails to meet the benchmarks and parameters set by the “key elements” in the IMF program or fails to reach a common agreement for debt restructuring with the creditors? Since such a prospect cannot be ruled out in a background of geopolitical rivalries, it is imperative that Sri Lanka prepare itself by seriously exploring alternative options independent of support from the sources currently being pursued. If Sri Lanka does not explore alternative options. its economic revival program would be severely impacted, and Sri Lanka would then be left to its own devices to meet all challenges.
THE FOCUS of the SURVIVAL STRATEGY
One key area that would impact on Sri Lanka’s economic revival program is the cost of fuel oil. A Special Press Release dated June 13, 2021by the Cost of Living Committee chaired by the President states: “Sri Lanka has become a country that not only spends a large amount of foreign exchange for fuel imports, but also a country where its transport services, power generation and the function of some of the factories are based on these imports. In 2019 alone, the foreign exchange spent on oil imports was US$ 3, 677 million”. However, with the reduction in international oil prices coupled with the ban on vehicle imports the cost of fuel imports was reduced to US$ 2,325″. DESPITE, SUCH FLUCTUATIONS, THE PRESS RELEASE STATES: “THE EXPENDITURE FROM THE FOREIGN EXCHANGE EARNINGS FOR PETROLEUM IMPORTS WOULD BE AROUND US$ 4,000 MILLION. THIS AMOUNT IS CLOSE to 1/3 of the TOTAL FOREIGN EXCHANGE EARNED FROM THE EXPORTS… THE PRIVATE AND PUBLIC TRANSPORTATION ACCOUNTS FOR NEARLY 60%OF THE FUEL CONSUMPTION”.
With the introduction of the QR system for transport and the continued ban on vehicle imports together with the fact that the cost of importing fuel oil is highly dependent on global developments, a more realistic import bill for fuel oil could be assumed to be US$ 2,500 to 3,000 million annually. This means that Sri Lanka would need US$ 10, 000 to 12,000 million over a period of 4 years. Since the Extended Fund Facility of about 2.9 Billion proposed by the IMF pales in significance to meet the fuel oil needs of Sri Lanka, and because fuel oil is fundamental to the economic revival program, it is imperative that Sri Lanka explores fresh strategies to meet fuel oil needs without which there would not be an economic recovery.
The following are the hard realities:
The economy cannot revive without sustained supplies of fuel oil.
Sri Lanka does not have the foreign exchange to sustain importing its fuel oil needs.
The economy cannot revive if Sri Lanka has to live from ship load to ship load, or on negotiated credit lines.
The Strategy:
Therefore, Sri Lanka has to negotiate a government to government arrangement or one that is underwritten by governments where the payment for immediate fuel oil needs is deferred to a later date, until a Refinery is set up and functioning on the basis of a Joint Venture. Furthermore, such a Joint Venture would enable Sri Lanka to repay deferred commitments from Sri Lanka’s share of the proceeds from the Joint Venture.
Savings arising by deferring payment while the refinery is being set up could be used to repay outstanding debts.
The Refinery should be located in Trincomalee.
The Capacity of the Refinery should be to meet Sri Lanka’s needs with the excess being exported to Indian Ocean Rim (IOR) countries.
Sri Lanka’s equity to the Joint Venture could be part of the Tank Farm in Trincomalee, its Harbour and its strategic location for distribution of finished petroleum products.
Equity of the Partner is the Refinery and the steady supply of fuel oil.
THE URGENCY of the SITUATION REQUIRES THAT SRI LANKA EXPLORES THIS OPTION at the HIGHEST LEVEL — an OPTION that is REFLECTIVE of the CORE VALUE of SELF-RELIANCE.
CONCLUSION
The Staff-Level agreement that Sri Lanka has reached with the IMF backed up by an Extended Fund Facility of about US$ 2.9 billion is expected to boost the confidence of the creditors and encourage them to be accommodative towards Sri Lanka in their efforts to reach a common restructuring arrangement to address its debts. If such a positive outcome materializes, the prospects of an economic revival would be real. On the other hand, if outcomes of the negotiations do NOT turn out to be as encouraging as hoped for, it is imperative that Sri Lanka prepares itself beforehand with alternative strategies, one of which would be to earnestly explore arrangements at the highest level to secure its fuel oil needs on the basis proposed above, if it hopes to revive its economy. If by a stroke of unusual good fortune, the outcomes relating to restructuring and a Joint venture to secure Sri Lanka’s fuel oil needs are both positive, the economic revival would be that much faster.
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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