Features
Cattle slaughter ban: It’s not intentions but consequences that matter
By Sathya Karunarathne and Pravena Yogendra
The Cabinet of Ministers approved the Bill to amend laws to ban cattle slaughter in the third week of October. While this is a contentious policy measure, it did not come as a surprise as the Prime Minister proposed the same policy just over a year ago, in September of 2020.
From the outset, it may seem that the policy is well-intended. Alleviating animal suffering is a noble cause that many Sri Lankans would identify with. Unfortunately, even well-intended policies have unintended consequences. In the case of a cattle slaughter ban, the consequences can be dire for the livelihoods of thousands of people. As stated by the Department of Census and Statistics, 117,033 farmers raised cattle and/or buffalo locally and 56,984 farmers raised improved cattle and/or buffalo in 2020.
Further, as reported by the Livestock Statistical Bulletin there were 296,111 cattle farms and 26,284 Buffalo farms registered in 2020.
The cattle rearing industry does not exist in isolation, nor is it sustained to nurture the beef industry alone. Cattle are an integral part of the dairy industry, leather tanning industry and footwear and leather goods industry. The dairy industry sells unproductive cattle, where 50% of the animal is salvaged as beef and other parts are sold as raw material to other industries such as the leather tanning industry, etc. Therefore, a cattle slaughter ban would have consequences on all these sectors.
The government’s intention in banning cattle slaughter is to increase dairy production and local agriculture as reported by the media.
According to Central Bank data in 2020, the annual milk production from cattle was 414 Mn litres and 78 Mn litres were produced by buffalos.
In the same year, Sri Lanka imported 102,355,524 Kgs of milk and milk products, and exported 1,057,079 Kgs of the same.
To keep this dairy industry running, milk producers need to get rid of unproductive cattle. Eranga Nihal Perera, the Chief of Ceylon Cattle Farmers Association put this into perspective speaking, to the Sunday Times a few weeks ago. He stated that a bull or milch cow requires 10 percent of its body weight in food daily. For example, an adult stud bull weighs about 400 kgs. That is approximately 40 Kgs of feed per bull, every day. Therefore, a bull would require a monthly cost of around Rs, 26,000 to be maintained. It makes limited economic sense to sustain unproductive cattle ,incurring such costs as it will increase costs of maintenance with no return on investment.
162,000 cattle were legally slaughtered in 2020. Key person interviews with leading industry stakeholders revealed that the cattle population which amounted to 1,628,771 in 2020, can grow up to three times within 10 years with the implementation of a slaughter ban with 75% of them counting to be unproductive. The costs of maintenance will therefore evidently be unbearable. These cost increases, if they can be sustained at all, will be passed on to consumers as price increases in milk. A further stress to an industry already reeling with shortages and high prices.
Beef is sourced from cattle deemed as unproductive by the dairy industry. Male cattle or bull calves are used to identify female animals in heat and to serve stud purposes aiding the artificial insemination process. They are slaughtered for beef when they reach about three months of age. Milch cows are slaughtered after completing four calving cycles as they are considered aged, unproductive and unprofitable to maintain at this juncture. Unproductive animals must be culled to maintain the overall productivity of the herd as unproductive stud animals could mate with productive cows producing low yielding calves.
The latest available data shows that beef production in 2019 amounted to 29.87 metric tons.Smallholder dairy farmers contribute to this as smallholders dominate the livestock industry.12 For example, a 2019 study by the University of Peradeniya revealed that among private dairy farms in the country about 95% are small scale producers.13While cattle farming in Sri Lanka is running on narrow margins, a significant contribution of the marginal profits comes from the sale of these animals to the beef industry. Dairy farmers make an annual lifetime profit of ~30% from the sale of an animal. Therefore, small farmers who raise cattle individually for an additional income will be severely impacted by the ban. They will not be able to afford the additional maintenance costs of unproductive cattle and will have to halt their small scale business operations.
Banning cattle slaughter with the intention of increasing dairy production therefore is contradictory as it proves to be counterproductive. As illustrated above the milk industry can barely sustain itself without the beef industry.
A slaughterer purchases an animal for Rs. 300 per Kg live weight. Live weight ranges from 300-500kg. Thereafter, 50% of the animal is salvaged as beef and the remaining is sold to other industries. The leather tanning industry is one such industry that sources raw material from cattle slaughter. A slaughtered cow yields 15-16 sq ft of rawhide. Rawhide is sourced from the slaughterer by the leather tanning industry at Rs. 45 per Kg. Domestically tanned leather is sold to the footwear and leather goods industry as raw material at LKR 175 per Kg as opposed to imported tanned leather priced at LKR 250 per kg ($1- 1.20).15 Moreover, discussions with the industry revealed that about 60% of leather needed to produce affordable footwear is produced domestically and banning cattle slaughter will directly impact the accessibility of affordable footwear by the middle and lower-income earners of the country. Further, more than 60% of the footwear and leather goods industry consists of micro and small businesses.16 Therefore, this policy measure will indeed hamper their access to affordable raw material and their very sustenance.
Implications of Cattle Slaughter
As stated by the Buddhasasana, Religious, and Cultural Affairs Ministry Secretary, Prof. Kapila Gunawardana the government is discussing the possibility of exporting ageing cows that will not be slaughtered in Sri Lanka with the implementation of the ban.17 However, exporting aged live cattle is challenging as there is a high probability of international markets being reluctant to purchase cattle exposed to infections in the process of transportation.
With the increase of idling cattle, the government will have to invest to build new cattle salvage farms ensuring adequate veterinary facilities and daily feed. The NLDB has only two salvage farms in Kurunegala and Anuradhapura with a combined capacity of 1,000 animals at a time. About 400 cows are legally slaughtered per day.As aged cattle require high maintenance costs with no return on investment, this will be an added strain on government expenditure given Sri Lanka’s current limited fiscal space and precarious economic conditions. This will also clash with limited agricultural land available in the country leading to a serious threat to crops.
Moreover, with the local beef industry coming to a complete halt, the domestic production and importation of alternative sources of protein, such as chicken and fish, will have to increase, meeting domestic demand and ensuring affordability for the average consumer. It is important to note that the prices of these alternatives have experienced a steep increase. According to the Department of Census and Statistics weekly retail prices, 1kg of fresh chicken that cost Rs 558.93 in November of 2020 costs Rs 727.27 now. Further, 1kg of Salaya that cost Rs.252.67 in November of 2020 is now priced at 291.67.20
Moreover, a flat-out ban on cattle slaughter will breed an underground economy of illegal slaughter and trade. This will foster animal cruelty as the industry will not come under the purview of welfare authorities, creating the environment for low-cost slaughtering techniques defeating the very moral grounds of a cattle slaughter ban. Further, banning cattle slaughter with no ban on beef consumption allowing for beef imports will only shift the burden of slaughter elsewhere. This is hypocritical as cattle will still have to be slaughtered abroad, for the consumption of Sri Lankan people. It is worthy to note that India is the fifth largest carabeef exporter in the world earning 2.8 billion dollars in exports in 2020 despite the country’s religious veneration of cattle.
It is evident that even though a slaughter ban may sound ideal in theory, it springs a chain of unintended economic consequences, hampering the dairy, beef and other related industries paving the way for further price increases and posing a threat to business operations. Therefore, it is clear that when making economic decisions it is paramount to look at policies in terms of incentives they create rather than blindly pursuing a goal. This simply means that immediate and long-term consequences matter more than intentions. Economic policies therefore must strive to go beyond intentions crafted by hopes and inspiration. Failure to do this will certainly lead to disastrous outcomes for the whole nation.
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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