Features
Constitutionalism, Governance, and the People
by Prof. Savitri Goonesekere
Coming to the University of Peradeniya is always a special experience. It brings back memories of carefree student days in a perfect environment for friendship and learning. Who can forget the glorious “yellow showers,” the winding Galaha Road, the lawn mowers on fresh grass, “sunset and evening star” and the flute music? The memory is also tinged with sadness, for the troubled times experienced on this beautiful campus, the changes in that familiar environment that have taken place, over threescore years and ten. The changes themselves reflect my own experience, and that of all of us as citizens, on the governance of this country and our universities. I thank the Law Department for inviting me, an alumnus of the first Department of Law in our public university system, to deliver the inaugural Sir Ivor Jennings memorial lecture. Sir Ivor Jennings, the founding Vice Chancellor of the first national University of Ceylon and its twin successor the University of Peradeniya can also be described as one of the founders of Constitutionalism and governance in both the country and the national university system of Sri Lanka.
The inauguration of a lecture series in Sir Ivor Jennings’ memory by the Law Department can also be an occasion to reflect on his life and times in this country, and the changes we have witnessed in these areas. The topic I have chosen for this evening’s lecture is a tribute to a scholar and administrator of a colonial era, whose ideas are an important resource, as we respond to contemporary realities of governance in our country and the university system.
Let me clarify at the outset especially to students, that I am not one of the oldest living students of Sir Ivor Jennings. I was not a student of Sir Ivor, when he lectured in the Law Department, and was Vice Chancellor of the University of Ceylon in Peradeniya. Indeed, I discovered I was a prize winner in my secondary school, Ladies’ College, when Sir Ivor gave the keynote speech at our annual prize giving. I am sure that I was much less impressed with him, than I was with senior student Kumari Jayawardene, speaking passionately on a school platform on worker’s rights. I read through his classic works “The Law and the Constitution,” and “Cabinet Government,” and Jennings and Tambiah on “The Legal System of Ceylon,” very much in the spirit of plodding through “recommended readings.” Constitutional law paled in comparison with other law courses that inspired my interest. However, there were anecdotes that we heard about Sir Ivor. We heard that he was a “student friendly” former Vice Chancellor, quite the contrast of fearsome Sir Nicholas Attygalle. I recall my first examiners’ meeting in his room (the Vice Chancellor chaired the Board Meeting for the award of degrees.) Sir Nicholas looked at me with a steely eye and said “who may I ask are you?” Quite a contrast to Sir Ivor, who sent out a staff circular, which said, “My address is now 18, Aloe Avenue, Colpetty. A drink is always available for members of the staff who feel thirsty or otherwise sociable.”
Besides, we were the beneficiaries, the “nidahas adhyapanaya labee,” the early students to enjoy the beautiful learning environment that we knew Sir Ivor had struggled to create for us all, despite his implacable objections to the Kannangara policies of free education.1 We enjoyed a peaceful conflict-free learning environment that had been created according to Sir Ivor Jennings’ vision of what university life should be.
When we were undergraduate, some of us women students who refused to boycott classes were met with hoots and whistles when we went for lectures. Yet our “black leg” voices were heard at a huge meeting held under the glorious tree in front of the Senate building, and the strike was over. This meeting was presided by senior politician Dr Sarath Amunugama. Barely a decade later when I was on the staff of the Law Department which had by then moved to Colombo, a student in one of the halls of residence in Peradeniya leapt from an upper floor during ragging, and was crippled for life. My students in Colombo told me they would be assaulted if they followed my advice and expressed their objections to boycotting classes “in sympathy” with the students suspended over the incident. The beautiful and conflict free learning environment that Sir Ivor Jennings, the founding Vice Chancellor had strived to create was already beginning to crumble, a decade later.
Sir Ivor’s commitment to academic excellence meant that high academic standards were maintained in the years that followed his term in office. Products of the University of Peradeniya at the time, and not just the top tier, achieved success and eminence in diverse fields. The equality of access that Sir Ivor feared would result in a “levelling down” of academic quality with free education, in fact gave equal access to a good education for those who entered through the portals of the University of Ceylon, Peradeniya.
Institutional memory in this country is very short. It is only the University of Peradeniya that has sustained our memories of Sir Ivor Jennings’ contribution to our university system and the governance of this country. When I served as Vice Chancellor of the University of Colombo there was no photograph of Sir Ivor Jennings in College House, which he had occupied for many years, or any other building. I obtained a faded copy of a black and white photograph from Prof. Kapila Goonesekere, former Vice Chancellor of Peradeniya University; nothing like the imposing painting of Sir Ivor by David Paynter that adorns the walls of your Senate room.
Sir Ivor Jennings and the Road to Peradeniya
The life and times of Sir Ivor Jennings are documented in his own autobiography, published with an introduction of great professional skill, and with admiration, by the distinguished librarian, late Ian Goonetilleke. This is a rich resource. Professor Lakshman Marasinghe’s essay in a book on legal personalities supplements the autobiography with interesting insights on his work as a legal scholar and jurist. Sir Ivor was a controversial figure during the time he spent in the island, then Ceylon, where he had an important impact on public life and the education sector. His views and his engagement in the political life of the country, attracted criticism, but also admiration.
Sir Ivor began his tenure as Vice Chancellor of the University of Ceylon in the University of Colombo of today. He recalls in his autobiography how the law creating the University of Ceylon was passed on April 2, 1942, three days before the Japanese air raid on Colombo. He unfurled the university’s flag on June 12 on the grounds of College House. He remarks wryly, “being a little sentimental, [seeing] the flag sagging at one end [he] climbed the tower and adjusted it with a safety pin.” No Kandyan dancers, drummers and fanfare at this event.
An educationist of colonial times like Rev. W S Senior of Trinity College Kandy, when he left the island, could record in poetry, “my soul you will break with longing – it can never be goodbye.” Sir Ivor, the legal scholar, jurist, educationist, and administrator, could say with somewhat clinical objectivity, “I am in no way tied to Ceylon and can leave when the spirit moves.” Yet he had a vision and commitment to laying the foundation for a national university, which he believed could become “one of the finest small universities in the world.
Sir Ivor believed that a residential University in an attractive environment was one of the essential attributes of a great university. He was, as he describes himself, “a Cambridge [university] man.” His appreciation of the physical environs of that University created a desire to build a university campus on a site in Peradeniya, which he thought was one of “the most beautiful environments in the world for a university.”
The architecture and landscaping of this university continues to be a model for well-planned and attractive landscaped surroundings, creating a near perfect environment for scholarship and learning. His contribution in this regard has outlived Sir Ivor, even if the values on governance and university education that inspired him have been challenged in the realities of our nation’s post independence experience. However, if Sir Ivor’s surprising inclination to “pull down” College House and construct a women’s hostel had been realised, Colombo University would not have even that colonial heritage of great beauty on its campus surrounded by a wilderness of concrete box like structures.
Sir Ivor had a spectacular student career, receiving first class honours at every level. His approach to study is perhaps relevant to all law students who want to achieve academic honours in their law schools. He was a disciplined workaholic, even as a student. He saved his lunch money to buy books, and “study took precedence over everything.” He studied with “regularity and consistency,” developed a timetable for this, studied the “technique of examinations,” striving to obtain “not only a first, but a brilliant first.” Yet he did not believe only in examination success and paper qualifications. He believed that a residential University could create an environment for extra curricular activities providing an education that was interdisciplinary, stimulating interest in poetry, philosophy, and the arts. His own scholarship crossed the boundaries of law, politics, and political science. He gave up mathematics to study law. He thought “the boundaries between academic subjects very artificial, for knowledge … knows no boundaries.”
The Law Department of Peradeniya is the first to integrate an interdisciplinary perspective, an initiative very much in harmony with Sir Ivor’s concept of a good legal education. Law schools, have, in general adopted what legal theory in the Anglo American tradition describes as “Austinian positivism” that teaches students how to learn and analyse the content of laws. However, in the early years the focus on reference and reading meant that students read widely and understood the core norms and concepts that linked law and administration of justice. This approach produced lawyers of great professional skill and eminence at a time when legal education was exclusively in English. It has had serious drawbacks for teaching and research in a challenging environment where very little literature is available in local languages, and most lawyers obtain a monolingual legal education with lecture notes in Sinhala or Tamil. Sir Ivor was uncompromising in his commitment to excellence in teaching and research. When my husband, as one of the young lecturers in the Law Department, was to go to Oxford for post-graduate studies, Sir Ivor advised him to read for a taught post-graduate degree in Civil law, (the BCL). Undertaking research he said, was the post qualification obligation of all University teachers, and a law teacher could then apply for a higher doctorate! This advice was clearly based on his personal experience as a scholar and jurist.
Though Sir Ivor’s scholarship and vision span law, politics and an interdisciplinary perspective, he was cynical about all “isms” – Marxism, nationalism, communalism, considering them political rhetoric. He had a poor and mistaken impression of the country’s cultural heritage. He thought that transferring the University to Peradeniya could help “a cultural desert in Ceylon to blossom like a rose.” Yet he established a Faculty of Oriental Studies in the University of Ceylon, encouraged the development of these disciplines, and stressed the importance of scholarship and learning that was sensitive to local social and economic realities. He supported the creation of a university endowment fund, and a museum for sculpture, paintings and objects of art. He thought “pious benefactors” from the private sector would contribute to such a fund, and wanted the sales of his autobiography used for such an initiative. I believe that late Ian Goonetilleke who treasured his own stunning collection of artworks by George Keyt and many other reputed Sri Lankan artists, was inspired by Sir Ivor’s vision to donate this priceless collection to the University of Peradeniya. An Ivor Jennings memorial lecture is surely an occasion to also pay tribute to that joint vision. Universities are receiving substantial funds from Government to improve their infrastructure. Is it not possible to give a museum project maximum priority in university planning, supplementing this with support from “pious benefactor” alumni in business and the professions?
Values on university autonomy free from political interference were very much the foundation for Sir Ivor’s vision of university education. The 1942 University Ordinance, which he drafted, also incorporated the concept. This law established Councils, Senates and Faculty Boards, modelled on the institutional arrangements of British universities. For Sir Ivor, the institutions, (still embedded in our university system, in 1978/1985 legislation), could provide academics with the tools to resist abuse of political and official authority and interference in university administration. When the University of Ceylon Bill was being debated in the legislature, Sir Ivor who sat behind the Minister C.W.W. Kannangara, drafted quick amendments that prevented clauses being introduced that could erode university autonomy. Though he and the Minister opposed each other in the Committee on Education on the proposals for free education, they shared the same perspective on the importance of maintaining the autonomy of universities in the area of higher education.
Academics from the university community in Peradeniya gave leadership when university autonomy was under attack in the late 1960s and 1970s. The current Universities Act with strong provisions on this principle, was adopted once again in 1978 with the contribution of senior academics from Peradeniya University. It was intended to restore the autonomy of universities. It was unfortunately amended in 1985, creating new provisions on the appointment and dismissal of Vice Chancellors with an expanded regulatory role for the University Grants Commission. These changes undermined the authority of the highest university bodies (Councils and Senates) and has encouraged political interference.
Two university Vice Chancellors have been recently removed without, it is alleged, following even the required procedures. A few academics have publicly challenged these actions. But we have, in general, become accustomed to erosion of university autonomy by political authorities, even though the institutional arrangements introduced in 1942 by Sir Ivor continue to be part of our university system. State universities are being blamed for not sustaining excellence in education and contributing to human resource development. No link is made to the toxic impact of politicization of university education.
Constitutionalism and the Sri Lankan People
Constitutionalism, as law students know, refers to the theoretical underpinnings of Constitutional law. The theories in turn impact on the institutional arrangements for governance, and the concepts incorporated in Constitutions. Constitutions and their theoretical concepts are often dismissed as irrelevant for the People. Yet, governance impacts on peoples’ lives. Constitutions and the people are therefore all connected.
Nelson Mandela referring to Constitution making in South Africa in 1996, said that a Constitution is “a law that embodies the nation’s aspirations.” Sir Ivor Jennings wrote an Article published in the Ceylon Daily News three decades earlier in 1962 commenting that, “any lawyer can draft a Constitution for anywhere. The difficulty is to persuade a people to make it work.” The “aspirations” justification for Constitution making in Mandela’s words, places the concept of the “Sovereignty of the People” at the centre of Constitution making. Sir Ivor’s comment focuses on the responsibility of both rulers and the governed to make Constitutions work.
The weeks and months prior to the Presidential elections 2019 witnessed an outpouring of public anger against politicians and our legislators. A constant refrain is the failure and defects of democracy, and Constitutionalism as lawyers know it, and a desire to replace it with new institutions and “strong individual leadership.” Another discourse calls for rejection of any links to Constitutional norms and standards derived from what are described as implanted and alien “colonial” or “Western elitist” norms and standards of governance. The idea of governance based on “jathika chinthanaya” or national conscience advocated the need to link political ideology with a local, rural, traditional culture. This has now been reinvented in a new discourse on the need to reject for all time “Suddha law.” This is a phrase used by the monk Gnanasara when he disrupted Court proceedings and was convicted of contempt of court. The public display of abuse of power, arrogant, irresponsible and corrupt governance, selfish political leadership and waste of national resources despite regime changes, has created a demand by some for a complete rejection of Constitutional theories and the institutions of governance.
Such trends are visible in other countries too. The furore over Brexit in the United Kingdom and the conflict between Parliament and the Prime Minister is sometimes traced to the absence of a written Constitution with specific provisions on how to cope with challenging problems of governance. Sir Ivor Jennings, the British constitutional lawyer and jurist, drafted written Constitutions for many countries, and wrote his seminal work on “The Law and the Constitution.” He would have contested the suggestion that Constitutional law and Constitutionalism could only be embedded in a written Constitution. From his perspective, governance that limited State power, and based on written or unwritten Constitutions was the responsibility of the rulers and the governed.
(Excerpted from “Inaugural Sir Ivor Jennings lecture of the Department of Law University of Peradeniya,” included as part of the new book “Perspectives of Constitutional Reforms in Sri Lanka” edited by Dr. Hiran W. Jayewardene and Sharya Scharenguivel. Published by International and Contemporary Law Society).
Features
The heart-friendly health minister
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.
Features
A LOVING TRIBUTE TO JESUIT FR. ALOYSIUS PIERIS ON HIS 90th BIRTHDAY
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.
Features
A fairy tale, success or debacle
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 . )