Features
Challenges to Pohottuwa in Geneva – I
By Austin Fernando
Due to pressure from the European Union, which has, in keeping with UNHRC resolution, in March 2021, decided to consider, the withdrawal of GSP+, action is pursued back home to adopt countermeasures. Justice Minister Ali Sabry has launched a website of the Office of National Unity and Reconciliation, and the Cabinet has approved policies and guidelines for the Office for Reparation, and the government opened an Office of Missing Persons (OMP) in Kilinochchi. Too little, too late!
However, the appointment of an Advisory Board, by President Gotabaya Rajapaksa to recommend and advise as regards what action should be taken in respect of the persons imprisoned or detained over terrorist activities, should be appreciated. Speculation is that some of the detainees may be released soon, as an initial response. The government seems to be softening its stand following the US Ambassador’s lunch with Minister Professor GL Peiris (PGLP) and MP MA Sumanthiran, which has loaded energy to sprint. MP Sumanthiran’s interest for the US to intervene, become the “third faction” (Daily News-.31-8-2021) also shows sprinting from the other end
Complaints that the government is using the Prevention of Terrorism Act to suppress people’s rights, and its alleged interference in judicial decisions will aggravate Sri Lanka’s problems in Geneva.
Commitments to UNHRC
The Government of Sri Lanka (GoSL) committed to Transitional Justice (TJ) by unilaterally placing UNHRC Resolution 11/1 and co-sponsoring Resolution 30/1. These commitments matched the ‘Four Pillars of TJ/ Reconciliation’ – seeking truth, justice, reparation, non-recurrence. Its implementation was:
Establishing the OMP, and the attempt to establish a Truth and Reconciliation Commission (TRC) through Cabinet Memorandum by PM Ranil Wickremesinghe (October 18, 2018), which failed with the ‘Constitutional Coup’ of October 26, 2018.
Study of Accountability Mechanism (AM) by a Working Group during the Yahapalana regime; no legislation was undertaken.
Yahapalana government establishing the Office for Reparation.
The expectation of non-recurrence through Constitution-making failed during the Yahapalanaya, and Pohottuwa looking forward to Romesh de Silva Committee.
The AM seems ‘dead’, though it is the most sought for, and alive among victims, their spokespersons, and internationals. Hence, AM will be addressed to understand its implications.
Accountability Mechanism
In terms of UNHRC Resolution 30/1, GOSL has acknowledged that accountability is essential to uphold the rule of law and build community confidence in the justice system. The GOSL proposed (30/1) to establish a judicial mechanism with a Special Counsel to investigate allegations of violations and abuses of human rights and violations of international humanitarian law. The credible judicial process included independent judicial and prosecutorial institutions and affirmed the importance of participation in a Sri Lankan judicial mechanism, including the Special Counsel’s office, of Commonwealth and other foreign judges, defense lawyers, authorised prosecutors, and investigators.
Yet, the AM has not been put in place by the nationalist Pohottuwa, and the undecided Yahapalanaya governments for political reasons. The victims, politicians, and the Diaspora demanded the AM on humanitarian and political grounds.
The unacceptability of the AM is based on several concerns:
(i) After the war victory, the soldiers deservedly became ‘war heroes. The terrorists who egregiously violated human rights and humanitarian laws were not affected by TJ, due to death, migration, etc. Therefore, a justifiable argument was put forth against prosecuting only military officers. The UNHRC wanted action against every violator.
(ii) Many are those who claim that the AM proposal is an attempt by the Diaspora and LTTE supporters to launch a witch-hunt against the military. We overlooked that our international friends also support accountability, as recently expressed by Lanka-friendly Lord Naseby when inquired (Pathfinder Foundation Zoom Meeting) whether he precluded ‘war crimes investigations’ having quoted the White Flag incident.
(iii) Even a deadlock could happen if the soldiers do not respond to AM summons. Such a situation could bring the military and the judiciary on a collision course. An AM, that is put in place with the ground reality being factored in, will fail.
(iv) There are two schools of thought as regards TJ: the ‘legalists’ and ‘realists.’ The ‘legalists’ argue prioritising judicial accountability to promote sustainable peace. In contrast, ‘realists’ argue for the prioritisation of restorative justice, for example, TRCs or Reparation Offices. Some question the UNHRC’s preoccupation with the ‘legalist’s viewpoint’.
(v) Existing domestic legal provisions conflict with AM implementation.
(vi) Overall, it was politically unsound.
Validation of AMs
Public validation of AM was orchestrated by Prince Zaid Al Hussein, the former UNHRC’s High Commissioner at a press briefing in Colombo. He declared: “Virtually every week provides a new story of a failed investigation, a mob storming a courtroom or another example of a crime going unpunished. Sexual violence and harassment against women and girls are particularly poorly handled by the relevant State institutions — especially when the alleged perpetrators are members of the military or security services — and, as a result, it remains all too widespread.” This had made the UNHRC suggest international participation in AM, he said. The Tamil Diaspora’s and victims’/ spokespersons’ mindsets remain unchanged even today.
Another view was that alleged violators would be hauled before the International Criminal Court. At the briefing, Prince Hussein declared that it was not expected, and difficult, probably knowing our ability to muster a veto at the UN Security Council.
Answering a journalist, Prince Hussein affirmed that the UNHRC wished that any decision-making was the sovereign right of Sri Lankans. He cautioned that whatever the recommendations, we must finally make victims feel that justice had been delivered to them. This balancing act is one of the challenges before PGLP.
As for TJ, no order was given for establishing any institutions. Hence, first establishing the less controversial TRC, OMP, and Reparation Mechanism, allowing the public to understand the non-destructive nature of TJ was preferred. But, for political popularity, the victims’ spokespersons thought differently and demanded AM.
Prince Hussein wished the AM was established according to Sri Lankan laws. Most of the majority community members detested the establishment of AM. The victims called for an AM to severely punish the military personnel, and they ignored the LTTE’s crimes. Some legalists spoke of the potentiality of worst consequences such as universal jurisdiction if TJ is disrespected.
I quote an Attorney justifying an accountability process, as anticipated by the UNHRC. She argued:
(i) A credible accountability process against those most responsible for violations and abuses of human rights and humanitarian laws will safeguard the reputation of those, including within the military, who conducted lawfully.
(ii) An accountability process is essential for non-recurrence, as unredeemed violence is one of the greatest contributory factors for recurrence.
(iii) The only way to prevent recurrence is by combating the causes of conflict, which can be done only through a process that properly addresses past violations.
(iv) The GOSL needs to fulfill its constitutional obligation to investigate and prosecute past crimes. To renege on that will not only taint the credibility of the GOSL in the eyes of the international community, but it will also erode public confidence instilled in the government concerning its commitment to uphold human rights, including combating impunity.” (Sri Lanka’s Time to Try: Editors – Dr. Isabelle Lassee/ Zahabiya Husain [SLTT] Page 135: ‘Dealing with the past’: Prashanthi Mahindaratna)
Her arguments are difficult to counter and were repeated. I quote Attorney Achala Seneviratne: “By punishing real criminals we create an opportunity to prove that we do not favor criminals because they are war heroes. Hiding criminals make the whole military criminals.”
Additionally, Mahindaratna stated the existing legal means. Quote:
“In fact, in terms of the Commissions of Inquiry Act, the Attorney-General is permitted to institute criminal proceedings solely based on the findings of a commission of inquiry appointed under the said Act, and in terms of the Code of Criminal Procedure (CCP), a police officer is required to ‘forthwith’ communicate to the magistrate having jurisdiction, or to his superior, ‘any information which he may have or obtain respecting’ (a) the commission of or attempt to commit any offense; (b) a sudden or unnatural death or death by violence; and (c) recovery of a dead body where the cause of death is unknown. Thus, by law, the police are required to initiate an investigation into an alleged crime upon learning of its commission by whatever means. As such, the oft-repeated justification for inaction that a criminal investigation could be initiated only where there is a formal complaint filed by a complainant is without merit.” (Ibid: Page 122).
Though this validation is acceptable, literature speaks negatively about its operability. Quote:
“While some international observers believe the new government (2015) should be generously afforded the time and space to develop its own mechanisms, the reality is that Sri Lanka’s record of domestic accountability throughout its post-independence history has been characterized by a lack of political will, lack of capacity, political interference, and chronic failure. To expect victims to put their trust in familiar domestic mechanisms that have failed time and again is unfair and unwise.” (SLTT- Page 139: ‘A hybrid court: Ideas for Sri Lanka – Rhadeena de Alwis and Niran Anketell).
The Special Rapporteur on the Independence of Judges and Lawyers (June 2017) also noted serious drawbacks in our judicial mechanism. It highlighted: “… the inadequacy of the constitutional jurisdiction of the Supreme Court; lack of independence of the judiciary; lack of clear and transparent process for the appointment of judges, AG, and State Counsels; and the language barrier in making justice accessible to the Tamil community.” (SLTT – page 108: ‘Extraterritorial Prosecutions and Transitional Justice: Seeking Criminal Justice in and outside Sri Lanka’- Kalika Metha, Raquel Saavedra, Andreas Schuller)
Mahindaratna also quoted previous instances where justice had not been served, for example, Black July, JVP insurgency, the killing of journalists like Richard Zoysa, Lasantha Wickramatunga, lethargy on bringing to book Bond Scam perpetrators, the ethnic cleansing of the Muslims, no-action against Kumaran Pathmanathan, Kattankudy mosque attack and killing of 600 policemen in Kalmunai. (SLTT: Pages 123-125t). The foregoing proves that legalists are not partisan to any political or ethnic, or religious group when discussing accountability. As such, any government that does not accept the legalists’ standpoint is likely to play into the hands of the UNHRC.
Recent events
It appeared that de Alwis and Anketell agree with Mahindaratna’s thinking. The issue is that with such legal provisions being in place because investigations, prosecutions, and punishments do not follow. Instead, some recent events exhibited legal laxity.
The pre-Geneva pressure is still on from those such as the parents of the eleven youth, allegedly abducted and made to disappear allegedly by the Navy Intelligence. The parents have filed a complaint against the Attorney General (AG) for action taken to temporarily not proceed with the case against a former Navy Commander. (Morning Leader – August 13, 2021). However, the latter has reportedly obtained an interim order. This is the parents’ initial step, certainly not expecting success.
The second step was taken concurrently, seen from the statement of the Regional Director of Amnesty International, Yamini Mishra (ibid.). The issue has left our shores, on way to Geneva! Mishra claimed: “Since Sri Lanka has the world’s second-highest number of enforced disappearances this case was an opportunity for the Sri Lankan authorities to deliver justice for crimes under international law, by ensuring that those reasonably suspected of criminal responsibility, including those implicated for aiding and abetting and acting under the principle of command responsibility, are brought to trial.” Mishra endorses Attorneys Mahindaratna and Seneviratne.
Without a trial, Amnesty has prejudged ‘reasonable suspicion on the crimes’ ‘aiding and abetting’ and ‘command responsibility.’ Not being a lawyer, I refrain from commenting on factual legal nuances but agree with Amnesty’s principle that Sri Lanka’s commitment to ‘deliver justice’ could be established by court inquiry. It will show judicial integrity and genuineness.
Incidentally, Resolution 46/1 of March 23, 2021, under item 6 stated: “accountability for crimes and human rights violations in ‘emblematic cases. This is an ‘emblematic’ case, like Trinco Five and ACF Killings. Certainly, Amnesty International is helping the UNHRC Geneva to argue that total immunity is granted by quoted action, and, therefore, the onus is on the UNHRC to rachet up the pressure. Over to PGLP!
Foreign judges, special prosecutors
The most sensitive issue is adjudication by non-citizens. Some have interpreted Resolution 30/1 wording, arguing that foreign judges don’t need to mandatorily adjudicate; others fear compulsory adjudication. Some have contended that there are no legal constraints for it. They are of the view that no reference is made to citizenship under the Constitution – Article 107 in the appointment of the Supreme or Appeal Court Judges. However, Constitution – Article 107(4) and Judicature Act – Section 6(2) require Supreme Court or Appeal Court judges and Primary Court judges respectively to take and subscribe to the prescribed oath or affirmation, at appointment. It is assumed foreigners would not do so.
Jurisprudential pronouncements of the Supreme Court infer that a ‘Sri Lankan judicial mechanism’ cannot be manned by a non-citizen. The quoted judgment is Edward Francis Silva vs. Shirani Bandaranayaka, where the Court remarked the appointment of a non-citizen judge lacks qualification.
Constitution – Articles 31 and 91 state that citizenship is required for the appointment of the Executive and Parliamentarians. Citizenship is not an issue for enjoying certain rights under Article 10, torture (Article 11), equality (Article 12), and freedom from arbitrary arrest or detention (Article 13). Freedom of speech, assembly, and association under Article 14 is guaranteed only to citizens. The Constitution stipulating citizenship for Executive and Legislature appointments, being silent on the judiciary, permits space to argue that foreigners could be appointed to the judiciary. Contrarily, one may argue if citizenship is a requirement for the Legislature, a judge adjudicating Legislature’s actions should be a citizen.
Article 151 (3) of the Draft Constitution – 2000 specifically stated that citizens and Attorneys at Law must be appointed to the Judiciary. However, the absence of this constraining qualification in the 1978 Constitution and twenty amendments thereto weakens the argument for disqualifying foreigner appointments to the judiciary.
The 20th Amendment empowers a Dual Citizen President with the power to appoint judges. A Dual Citizen can become a Premier or legislator. In that spirit, one could argue that Dual Citizens could be appointed as judges. Opening for PGLP.
De Alwis and Anketell have discussed international experiences in the appointment of judges in Special Courts. Certain foreign Special Courts have appointed a higher number of non-citizen judges (Sierra Leone, Lebanon) and some lesser number (Cambodia). It would have happened due to the non-availability of judges qualified in international law and practice, and the same argument is raised here too. Some disagree. In Bosnia and Herzegovina, the composition of judges was changed from original over time. At the commencement (2005), each panel comprised two international judges and one national judge and in 2008 it was reversed. This gives a lead if foreign judges are engaged. Since foreign experts have served in Udalagama and Paranagama Commissions, similar service to AMs is justifiable. (Part II of this article will appear tomorrow)
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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