Features
Covid-19: The Epidemic and the Economy
Dr. Vitarana very simply explains the basic facts about the virus, its current level of transmission in Sri Lanka, the difficulties Sri Lanka will face in obtaining a vaccine for the entire population within a short-time frame, and calls for “community action” to end the pandemic. He calls the current mode of transmission, “uncontrolled community spread.” He suggests there could be 80% asymptomatic transmission and cites a figure of 30% test positivity from a random PCR study in Colombo by the CMOH.
by Rajan Philips
“What I have learned about pandemics is you have to be very humble. There is no mission-accomplished moment.”
Dr. Vin-Kim Nguyen
Perhaps every medical professional would agree with the sentiment in the above comment by a Vietnamese Canadian doctor, who is affiliated to two international hospitals, one in Montreal, Canada, and the other in Geneva, Switzerland. Unlike doctors who would give you the unvarnished truth, governments and politicians generally have different arrangements with truth and humility. Lack of humility and premature celebrations of victory are all too common in government and politics in Sri Lanka and elsewhere. The country seems to be now paying the price for the government’s premature declaration of victory over Covid-19 and prodigal distractions thereafter – changing constitution just for the heck of it and changing the heck out of the positions of doctors in public health agencies. The infection total is now past 21,000 and the death toll is reaching 100. A sevenfold increase in both in just over seven weeks. What is worrisome, apart from the rate of increases, is the absence of any indication that the government is in control and is able to arrest the trend, let alone reverse it.
Sri Lankan numbers are still peanuts in the global context. At Sri Lanka’s rates, the US should have under 400,000 infections and 2,000 deaths. But the superpower has a staggering 13 million infections and over a quarter million deaths. But the finally-on-his- way-out Donald Trump, after single handedly leading America to become the super spreader of the coronavirus, maniacally believes that but for his brilliant stewardship tens of millions of more Americans would be infected by now and a million of them would have died. Americans have managed to get rid of Trump, thanks to their unsung heroes who faithfully counted nearly 160 million votes in the most contentious of situations and the judges who boldly rebuked and threw out every one of Trump’s vexatious pseudo-legal challenges. But America is stuck with the coronavirus which is still spreading in its deadly mutation. And the vaccines, though the result of globally coordinated scientific efforts at the highest level, are not going to be overnight panaceas. Again, every medical professional is saying that.
Logistically, there are several hoops to pass through even after one or more of the three lead vaccine candidates are approved for use. Their mass production, storage and transport are all huge challenges, which can be done but not in any hurry. And worldwide vaccination thereafter will be an unprecedented health intervention on a global scale. Then come the challenges of keeping records for multiple inoculation, verifying vaccine effectiveness, and tracking virus transmission after vaccination by pre-symptomatic and asymptomatic carriers. According to experts the now ongoing clinical trials alone are not sufficient to be conclusive about any of this, given the speed at which vaccine development is necessarily being undertaken. The consensus upshot is that masks and physical distancing cannot be dispensed with easily or quickly even after vaccination programs get underway in different countries. All of this would invariably lead to delaying the resumption of economic activity to pre-pandemic levels. Sri Lanka is not alone in this, but there are many things that individual countries will have to do themselves on their own.
From Infection to Recession
Last week I mistakenly left out what would have been the last paragraph in my article. The paragraph was about Dr. Tissa Vitarana’s statement entitled, “Community action can end the Covid-19 pandemic,” that appeared in the Sunday Island on November 8. That statement is by far the best and the most comprehensive, if not the only, public health policy paper on the subject by anyone who is associated with the present government. There should be no surprise about such a statement coming from a former Director of the MRI and a respected professional and academic. He has also been a Minister in the previous Rajapaksa governments, briefly Governor of the North Central Province, and now a National List MP. What is surprising is that Dr. Vitarana’s expertise and thinking for dealing with Covid-19 are not able to find any resonance at any level in this government.
Dr. Vitarana very simply explains the basic facts about the virus, its current level of transmission in Sri Lanka, the difficulties Sri Lanka will face in obtaining a vaccine for the entire population within a short-time frame, and calls for “community action” to end the pandemic. He calls the current mode of transmission, “uncontrolled community spread.” He suggests there could be 80% asymptomatic transmission and cites a figure of 30% test positivity from a random PCR study in Colombo by the CMOH. He fears that waiting for the vaccine to control the virus could be a “distant dream.” The reason is that apart from logistical delays, Sri Lanka should be in a position to buy the available vaccine for 60% of the population in addition to the expected WHO’s free vaccine for 20% of the population, to vaccinate 80% of the population – the threshold “to break the chain of transmission in a population.”
Until then, it is “community action” that should be relied upon, along with the public health infrastructure and a knowledgeable population observing basic health practices, to contain the community spread of the virus. Dr. Vitarana is confident that “if a good example is set from the top (no large gatherings etc.) and the people follow the health guidelines, the country can get rid of the Covid-19 scourge.”
In fairness to Dr. Vitarana, he is not asking to be in charge of this community action plan, and he is confident in the abilities of doctors in the Epidemiology Unit and of the armed forces for tracking and tracing. And if Dr. Vitarana is just a retired professional without political involvement, no one would be suggesting that he should be recalled from retirement to head this or that coronavirus task force. The only reason that some of us are puzzled about his apparent exclusion, is that he has been so much a part of the PA/UPFA/ULF/SLFP/SLPP governing political formation for 26 years – all the way back from 1994, when some of the current bigwigs were in and out of the country and would not have known the difference between a parliamentary system and a presidential system.
Put another way, the mystifying exclusion of Dr. Tissa Vitarana and the inexplicably ridiculous transfer of Dr. Anil Jasinghe from Health to the Environment, are not signs of a government that is prepared to utilize the best available people and the all the available institutional resources to “methodically” (to borrow presidential terminology) deal with the current pandemic crisis. Equally, if things have been working, and there is no surge of infections, nobody will be talking about Dr. Vitarana or Dr. Jasinghe. And there is no certainty either that everything about containing Covid-19 is going to get better. At least, there are no encouraging signs that things are indeed getting better.
The saving grace for everyone is that the recovery rates are high and the death rates are still low. It would also seem that the symptoms of infected are people are not as severe in Sri Lanka as elsewhere, and hospitalization is not currently overwhelming. Will all these factors hold at their current manageable levels, or can they get out of control? I have not come across any discussion about future projections either through technical modelling, or based on experience and commonsense. The overall uncertainty affects decision making about the levels to which social and economic activities can be allowed to open up or resume. In the absence of certainty and determination, it will not be possible to plan for or promise economic growth, let alone prosperity. Even if Sri Lanka is somehow able to resume significant economic activities, it still will have to face a very sluggish world outside.
It is a sign of the times that the British government has officially declared that it is heading towards its worst recession in three centuries. That last one was in 1709 and was caused by a fierce European winter which ravaged economies and caused famine. This time the British economy is expected contract by 11.3%, worse than every country in Europe other than Spain which is staring at a 12.4% GDP drop. Rishi Sunak, Britain’s Punjabi-Hindu Chancellor of the Exchequer, told the House of Commons last week, “Our health emergency is not yet over, and our economic emergency has only just begun.” The emergency could apparently get worse if Brexit goes wrong. In any event, the British government is not expecting the economy to return to pre-pandemic levels until the end of 2022. That generally is the sentiment in most countries. And China cannot play the same saviour role it played during the 2007-2008 global financial crisis.
This is also the context in which Sri Lankan government leaders should rethink and revisit many of the premises and projections that were included in the new budget. If it is “day-dreaming” to think of buying vaccine to vaccinate 60% of the population, by what yardstick of reality can one expect 60% market capitalisation? Until Covid-19 is brought under reasonable control, it would not be realistic to expect the economy to return to anywhere near full throttle. Clearly, a total lockdown is not the answer, even though it would be the easiest to implement and to claim victory.
Economic targets and infrastructure investments that are inappropriate for the current situation, that are environmentally harmful, and do not carry long term benefits should be avoided. Inappropriate examples include construction of highways and mass paving of 100,000 kilometres of currently unpaved rural roads. The latter would be a drainage disaster. Potential projects that deserve investment green light, are helping garment factory workers to build their own houses, urban and rural water supply and sanitation schemes, countrywide drainage control, and water management as part of agriculture and food production. Such targeted economic activities can go hand in hand with “community action” to contain Covid-19.
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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