Features
Buddhist Theory of Kamma
by Venerable Narada Maha Thera
Kamma is the law of moral causation. The theory of kamma is a fundamental doctrine in Buddhism. This belief was prevalent in India before the advent of the Buddha. Nevertheless, it was the Buddha who explained and formulated this doctrine in the complete form in which we have it today.
What is the cause of inequality that exists among mankind?
Why should one person be brought up in the lap of luxury, endowed with fine mental, moral and physical qualities, and another in absolute poverty, steeped in misery?
Why should one person be a mental prodigy and another an idiot’?
Why should one person be born with saintly characteristics and another with criminal tendencies?
Why should some be linguistic, artistic, mathematically inclined, or musical from the very cradle.
Why should others be congenitally blind, deaf, or deformed? Why should some be blessed and others cursed from their births?
Either this inequality of mankind has a cause or it is purely accidental. No sensible person would think of attributing this unevenness, this inequality, and this diversity to blind chance or pure accident.
In this world nothing happens to a person that he does not for some reason or other deserve. Usually, men of ordinary intellect cannot comprehend the actual reason or reasons. The definite invisible cause or causes of the visible effect is not necessarily confined to the present life, they may be traced to a proximate or remote past birth.
According to Buddhism, this inequality is due not only to heredity, environment, “nature and nurture”, but also to kamma. In other words, it is the result of our own past actions and our own present doings. We ourselves are responsible for our own happiness and misery. We create our own Heaven. We create our own Hell. We are the architects of our own fate.
Perplexed by the seemingly inexplicable, apparent disparity that existed among humanity, a young truth-seeker approached the Buddha and questioned him regarding this intricate problem of inequality:
“What is the cause, what is the reason, 0 Lord,” questioned lie, “that we find amongst mankind the short-lived and long-lived, the healthy and the diseased, the ugly and beautiful, those lacking influence and the powerful, the poor and the rich, the low-born and the high-born, and the ignorant and the wise?”
The Buddha’s reply was:
“All living beings have actions (Kamma) as their own, their inheritance, their congenital cause, their kinsman, their refuge. It is kamma that differentiates beings into low and high states.”
The Buddha then explained the cause of such differences in accordance with the law of cause and effect.
Certainly we are born with hereditary characteristics. At the same time we possess certain innate abilities that science cannot adequately account for. To our parents we are indebted for the gross sperm and ovum that form the nucleus of this so-called being. They remain dormant within each parent until this potential germinal compound is vitalised by the karmic energy needed for the production of the foetus. kamma is therefore the indispensable conceptive cause of this being.
The accumulated karmic tendencies, inherited in the course of previous lives, at times play a far greater role than the hereditary parental cells and genes in the formation of both physical and mental characteristics.
The Buddha for instance, inherited, like every other person, the reproductive cells and genes from his parents. But physically, morally and intellectually there was none comparable to him in his long line of Royal ancestors. In the Buddha’s own words, he belonged not to the Royal lineage, but to that of the Aryan Buddhas. He was certainly a superman, an extraordinary creation of his own kamma.
According to the Lakkhana Sutta of Digha Nikaya, the Buddha inherited exceptional features, such as the 32 major marks, as the result of his past meritorious deeds. The ethical reason for acquiring each physical feature is clearly explained in the Sutta.
It is obvious from this unique case that karmic tendencies could not only influence our physical organism, but also nullify the potentiality of the parental cells and genes – hence the significance of the Buddha’s enigmatic statement, – “We are the heirs of our own actions.”
Dealing with this problem of variation, the Atthasalini, being a commentary on the Abhidharma, states:
“Depending on this difference in Karma appears the differences in the birth of beings, high and low, base and exalted, happy and miserable. Depending on the difference in karma appears the difference in the individual features of beings as beautiful and ugly, high-born or low born, well-built or deformed. Depending on the difference in karma appears the difference in worldly conditions of beings, such as gain and loss, and disgrace, blame and praise, happiness and misery. “
Thus, from a Buddhist point of view, our present mental, moral intellectual and temperamental differences are, for the most part, due to our own actions and tendencies, both past and present.
Although Buddhism attributes this variation to kamma as being the chief cause among a variety, it does not, however, assert that everything is due to kamma. The law of kamma, important as it is, is only one of the twenty-four conditions described in Buddhist Philosophy.
Refuting the erroneous view that “whatsoever fortune or misfortune experienced is all due to some previous action”, the Buddha said:
“So, then, according to this view owing to previous actions men will become murderers, thieves, unchaste, liars, slanderers, covetous, malicious and perverts. Thus, for those who fall back on the former deeds as the essential reason, there is neither the desire to do, nor effort to do, nor necessity to do this deed, or abstain from this deed. “
It was this important text, which states the belief that all physical circumstances and mental attitudes spring solely from past kamma that Buddha contradicted. If the present life is totally conditioned or wholly controlled by our past actions, then certainly kamma is tantamount to fatalism or determinism or predestination. If this were true, free will would be an absurdity. Life would be purely mechanistic, not much different from a machine. Being created by an Almighty God who controls our destinies and predetermines our future, or being produced by an irresistible kamma that completely determines our fate and controls our life’s course, independent of any free action on our part, is essentially the same. The only difference lies in the two words God and kamma. One could easily be substituted for the other, because the j ultimate operation of both forces would be identical.
Such a fatalistic doctrine is not the Buddhist law of kamma, Five Processes for Kamma Niyama.
According to Buddhism, there are five orders or processes (niyama) which operate in the physical and mental realms.
They are:
1. Utu Niyama –
physical inorganic order, e.g. seasonal phenomena of winds and rains. The unerring order of seasons, characteristic seasonal changes and events, causes of winds and rains, nature of heat, etc., all belong to this group.
2. Beeja Niyama –
order of germs and seeds (physical organic order), e.g. rice produced from rice-seed, sugary taste from sugar-cane or honey, peculiar characteristics of certain fruits, etc. The scientific theory of cells and genes and the physical similarity of twins may be ascribed to this order.
3. Kamma Niyama –
order of act and result, e.g., desirable and undesirable acts produce corresponding good and bad results. As surely as water seeks its own level so does kamma, given opportunity, produce its inevitable result, not in the form of a reward or punishment but as an innate sequence. This sequence of deed and effect is as natural and necessary as the way of the sun and the moon.
4. Dhamma Niyama –
order of the norm, e.g. the natural phenomena occurring at the advent of a Bodhisattva in his last birth. Gravitation and other similar laws of nature. The natural reason for being good and so forth, many be included in this group.
5. Citta Niyama –
order or mind or psychic law, e.g., processes of consciousness, arising and perishing of consciousness, constituents of consciousness, power of mind, etc. including telepathy, telaesthesia, retro-cognition, premonition, clairvoyance, clairaudience, thought-reading and such other psychic phenomena which are inexplicable to modern science.
Every mental or physical phenomenon could be explained by these all-embracing five orders or processes which are laws in themselves. kamma as such is only one of these five orders. Like all other natural laws they demand no lawgiver.
Of these five, the physical inorganic order and the order of the norm are more or less mechanistic, though they can be controlled to some extent by human ingenuity and the power of mind. For example, fire normally burns, and extreme cold freezes, but man has walked scatheless over fire and meditated naked on Himalayan snows; horticulturists have worked marvels with flowers and fruits; Yogis have performed levitation. Psychic law is equally mechanistic, but Buddhist training aims at control of mind, which ispossible by right understanding and skilful volition. The kamma law operates quite automatically and, when the kamma is powerful, man cannot interfere with its inexorable result though he may desire to do so; but here also right understanding and skilful volition can accomplish much and mould the future. Good kamma, persisted in, can thwart the reaping of bad kamma, or as some Western scholars prefer to say ‘action influence’, is certainly an intricate law whose working is fully comprehended only by a Buddha. The Buddhist aims at the final destruction of all kamma.
WHAT IS KAMMA?
The Pali term kamma literally means action or doing. Any kind of intentional action whether mental, verbal, or physical, is regarded as kamma. It covers all that is included in the phrase “thought, word and deed”. Generally speaking, all good and bad action constitutes kamma. In its ultimate sense kamma means all moral and immoral volition. Involuntary, unintentional or unconscious actions, though technically deeds, do not constitute kamma, because volition, the most important factor in determining kamma, is absent.
The Buddha says :
“I declare, 0 Bhikkhus, that volition is kamma, having willed one acts by body, speech, and thought. ” (Anguttara Nikaya)
Every volitional action of individuals, save those of the Buddhas and Arahants, is called kamma. The exception made in their case is because they are delivered from both good and evil; they have eradicated ignorance and craving, the roots of kamma.
“Destroyed are their germinal seeds (Khina beeja); selfish desires no longer grow,” states the Ratans Sutta of the Sutta nipata.
This does not mean that the Buddha and Arahantas are passive. They are tirelessly active in working for the real well being and happiness of all. Their deeds ordinarily accepted as good or moral, lack creative power as regards themselves, Understanding things as they truly are, they have finally shattered their cosmic fetters – the chain of cause and effect.
Kamma does not necessarily mean past actions. It embraces both past and present deeds. Hence in one sense, we are the result of what we were; we will be the result of what we are.
In another sense, it should be added, we are not totally the result of what we were; we will not absolutely be the result of what we arc. The present is no doubt the offspring of the past and is the present of the future, but the present is not always a true index of either the past or the future; so complex is the working of kamma.
It is this doctrine of kamma that the mother teaches her child when she says “Be good and you will be happy and we will love you; but if you are bad, you will be unhappy and we will not love you.” In short, kamma is the law of cause and effect in the ethical realm.
KAM MA AND VIPAKA
Kamma is action, and Vipaka, fruit or result, is its reaction.
Just as every object is accompanied by a shadow, even so every volitional activity is inevitably accompanied by its due effect.
kamma is like potential seed: Vipaka could be likened to the fruit arising from the tree – the effect or result. Anisamsa and Adinaya are the leaves, flowers and so forth that correspond to external differences such as health, sickness and poverty-these are inevitable consequences, which happen at the same time. Strictly speaking, both kamma and Vipaka pertain to the mind.
As kamma may be good or bad, so may Vipaka, – the fruit – is good or bad. As kamma is mental so Vipaka is mental (of the mind). It is experienced as happiness, bliss, unhappiness or misery, according to the nature of the kamma seed. Anisainsa are the concomitant advantages material things such as prosperity, health and longevity. When Vipaka’s concomitant material things are disadvantageous, they arc known as Adairaja, full of wretchedness, and appear as poverty, ugliness, disease, short life-span and so forth.
As we sow, we reap somewhere and sometime, in this life or in a future birth. What we reap today is what we have sown either in the present or in the past.
The Samyutta Nikaya states :
“According to the seed that’s sown, So is the fruit you reap there from, Doer of good will gather good,
Doer of evil, evil reaps,
Down is the seed and thou shalt taste The fruit there of”
Kamma is a law in itself, which operates in its own field without the intervention of any external, independent ruling agency.
Happiness and misery, which are the common lot of humanity, are the inevitable effects of causes. From a Buddhist point of view, they are not rewards and punishments, assigned by a supernatural, omniscient ruling power to a soul that has done good or evil. Theists, who attempt to explain everything in this and temporal life and in the eternal future life, ignoring a past, believe in a ‘postmortem’ justice, and may regard present happiness and misery as blessings and curses conferred on His creation by an omniscient and omnipotent Divine Ruler who sits in heaven above controlling the destinies of the human race. Buddhism, which emphatically denies such an Almighty, All merciful God-Creator and an arbitrarily created immortal soul, believes in natural law and justice which cannot be suspended by either an Almighty God or an All-compassionate Buddha. According to this natural law, acts bear their own rewards and punishments to the individual doer whether human justice finds out or not.
There are some who criticise thus: “So, you Buddhists, too, administer capitalistic opium to the people, saying: “You are born poor in this life on account of your past evil kamma. He is born rich on account of his good kamma. So, be satisfied with your humble lot; but do good to be rich in your next life. You are being oppressed now because of your past evil kamma. There is your destiny. Be humble and bear your sufferings patiently. Do good now. You can be certain of a better and happier life after death.”
The Buddhist doctrine of kamma does not expound such ridiculous fatalistic views. Nor does it vindicate a postmortem justice. The All-Merciful Buddha, who had no ulterior selfish motives, did not teach this law of kamma to protect the rich and comfort the poor by promising illusory happiness in an after-life.
While we are born to a state created by ourselves, yet by our own self-directed efforts there is every possibility for us to create new, favourable environments even here and now. Not only individually, but also, collectively, we are at liberty to create fresh kamma that leads either towards our progress or downfall in this very life.
According to the Buddhist doctrine of kamma, one is not always compelled by an ‘iron necessity’, for Kamma is neither fate, nor predestination imposed upon us by some mysterious unknown power to which we must helplessly submit ourselves. It is one’s own doing reacting on oneself, and so one has the possibility to divert the course of one’s kamma to some extent. How far one diverts it depends on oneself.
Is one bound to reap all that one has sown in just proportion?
The Buddha provides an answer:
“if anyone says that a man or woman must reap in this life according to his present deeds, in that case there is no religious life, nor is an opportunity, afforded for the entire extinction of sorrow But if anyone says that what a man or woman reaps in this and future lives accords with his or her deeds present and past, in that case there is a religious life, and an opportunity is afforded for the entire extinction of ‘a sorrow” (Anguttara Nikaya)
Although it is stated in the Dhammapada that “not in the sky, nor in mid-ocean, or entering a mountain cave is found that place on earth where one may escape from (the consequences of) an evil deed”, yet one is not bound to pay all the past arrears of one’s kamma. If such were the case emancipation would be impossibility. Eternal recurrence would be the unfortunate result.
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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