Features
Crisis in Sri Lanka and the world
BOOK REVIEW
By W. D. Lakshman, Professor Emeritus,
University of Colombo
Asoka Bandarage, Crisis in Sri Lanka and the World: Colonial and Neoliberal Origins – Ecological and Collective Alternatives. De Gruyter Contemporary Social Sciences. Vol 30. Berlin and Boston: De Gruyter. 2023
Asoka Bandarage is known for her unconventional approach in several of her publications on development which extensively draw case study material from Sri Lanka. Her examination of the current crisis in Sri Lanka also employs an innovative analytical approach, setting it apart from most existing studies on the subject. Her willingness to depart from convention in this exercise is commendable. Notably, emerging economies like Sri Lanka are increasingly finding themselves in turmoil during this era of neoliberalism. Bandarage’s book, therefore, is a must-read for those seeking alternative methodological stances and more comprehensive perspectives on the analysis of socio-economic crises in emerging economies.
The crisis that emerged in Sri Lanka in 2022 has turned out to be of unprecedented severity, leading the country to declare insolvency and debt default for the first time in its history. At the time of the declaration of insolvency, the government reached out to the IMF for a package of measures to resolve the crisis. At the time of writing, the country has been on an IMF package for about eight months.
The IMF package has brought about some changes in the appearance of the crisis. However, many of the fundamental factors, viewed from a holistic angle, that led to the crisis appear to have been further aggravated by the solutions applied. The crisis continues to take its toll on the people in numerous ways.
Most available accounts, including that of the IMF, perceive this crisis as predominantly economic and financial in nature. However, what Sri Lanka is experiencing is a multi-faceted crisis characterised by diverse causes, consequences, and processes. It encompasses not only economic and financial dimensions but also social, nutritional, and health aspects, political and democratic failures, debt-related challenges, institutional and governance lacuna, bribery and corruption allegations, and ecological concerns. Each of these aspects interacts with the others in complex ways.
The remedial measures taken by the government, according to the IMF-written policy package, addressing as they do only a restricted part of the problem, have now made the crisis a very real and pressing concern for the ordinary people in the country. Regrettably, many analysts, particularly economists and financial analysts, continue to emphasise the economic, financial, and debt-related aspects of the crisis, thus neglecting other important factors of grave relevance. Some analysts bring some history into consideration in explaining the crisis, but for many of them, the relevant history does not go beyond a few years in the immediate past.
Furthermore, many accounts tend to view the crisis as a fundamentally Sri Lankan phenomenon, bringing into analysis only some international influences like fluctuations in oil prices or critical commodity scarcities in the world market, failing to recognise the critical influence of holistically viewed global developments as having pushed the country into this predicament.
In this context, Asoka Bandarage’s Crisis in Sri Lanka and the World (hereafter referred to as Crisis) stands out as a refreshing and much-needed addition to the body of literature addressing the Sri Lankan crisis of the 2020s. She provides a holistic viewpoint, highlighting the multifaceted nature of the crisis and tracing its origins back to Sri Lanka’s historical evolution from colonial times. The Crisis is perhaps the only comprehensive publication written from such a holistic approach so far.
The book commences with a conceptual overview in Chapter 1, where Bandarage combines different themes that she develops in further detail in subsequent chapters. She places particular emphasis on the historical origins of the crisis. In Chapter 2, she delves into the development of the plantation economy in Sri Lanka during the colonial era. The subsequent three chapters cover the early post-Independence period (Chapter 3: 1948-77), the early phase of the post-liberalization period (Chapter 4: 1977-2009), and the period immediately preceding the crisis of the early 2020s (Chapter 5: 2009-19).
In this comprehensive historical analysis, Bandarage offers a bird’s-eye view of Sri Lanka’s key socio-political and economic trends over nearly two centuries and their evolving dynamics. She underscores the global influences, originating from diverse sources and with varying degrees of impact, on Sri Lanka’s domestic economy and its trajectory. Within this historical account, Chapters 4 and 5, which cover the closest influences on the early 2020s crisis, hold particular significance.
Chapter 5 delves into the evaluation of geopolitical rivalry, neocolonialism, and political destabilisation, exploring the range of international factors influencing the crisis that emerged in the early 2020s. Influences from Chinese, Indian, and U.S. expansionism into the Indian Ocean region, and interventions from international organisations like the UN Human Rights Council (UNHCR). Mainstream reviews of the 2020s crisis do rarely cover as extensive a terrain as this dealing with the international political economy of the Sri Lankan crisis.
Bandarage thus brings in a fresh and innovative perspective, shedding light on uncharted terrain of profound relevance to the subject under consideration. Noteworthy in this regard, is her scrutiny of the contemporary influences of the United States, through diplomatic efforts, to secure agreements signed with Sri Lanka in respect of the Millennium Challenge Corporation (MCC) Compact, the Acquisition and Cross Services Agreement (ACSA), and the Status of Forces Agreement (SOFA).
Chapter 6 encompasses various themes that both characteride and explain the crisis. A central factor is Sri Lanka’s excessive and unbridled debt, particularly its heavy borrowings through International Sovereign Bonds. Bandarage labels this as “debt colonialism” imposed on the country. She also draws attention to the extreme income inequality and widening disparities in the country resulting from decades of neoliberalism. The adverse impact of these factors has been exacerbated by the crippling effects of COVID-19 during 2020-21 and the political turmoil following the protest movement known as the “aragalaya” against the then incumbent regime.
The events set in motion by these protests, culminating in the country’s submission to an IMF programme, are well-documented. The rise, during this kerfuffle, of a political leader known for his extreme right-wing views, described by Bandarage as a “long-time US collaborator” (p. 82), to the all-powerful position of the country’s presidency enabled the seamless implementation of the IMF programme with minimal resistance from the Sri Lankan government.
Bandarage concludes Chapter 6 by illustrating how the cumulative events led to Sri Lanka’s collapse, not only economically but also politically, socially, culturally, and psychologically. She paints a grim picture, stating, “Forces of global financial and corporate power are not leaving any room for the survival of a local economy or a national government that can meet the needs of its people.
The multifaceted crisis is leading to the demise of Sri Lanka’s sovereignty, turning the country into a mere shell of a state, wide open for more external political, economic, and military exploitation” (p. 198). The situation, no doubt, appears dire, but it is worth also noting that Sri Lanka has a history of resilience in overcoming challenges and emerging from crises.
Completing her holistic analysis, Bandarage explores the ecological dimension of the crisis in her final chapter, which has been used to examine ecological and collective alternatives to neoliberal globalisation. This chapter hints at some underlying optimism she shares for Sri Lanka’s future. Bandarage seeks “collective and ecological alternatives to the globalised system underlying perennial socioeconomic, cultural, and political crises, war and refugee crises, leading us to an existential crisis” (p. 204).
In alignment with Karl Polanyi’s viewpoint, she argues (pp. 207-8) that allowing the market mechanism to solely determine the fate of human beings and their natural environment would result in the destruction of society. Bandarage draws inspiration from the Middle Path in Buddhist philosophy, proposing it as a non-violent alternative to extremism of all kinds (p. 211). She advocates policies guided by the Middle Path philosophy to achieve the desired ecological and collective alternatives to neoliberal globalisation.
Several essential themes developed in the Crisis pertaining to the economic, financial, and indebtedness aspects of the 2020s crisis in Sri Lanka merit attention. These themes resonate with my own thinking and published work and hold significance, as they are often disregarded by independent reviewers and government advisors, both domestic and international, including those from International Financial Institutions (IFIs).
One such theme investigates the influence of extreme socio-economic inequality on the 2020s crisis in Sri Lanka. Inequality has persisted in Sri Lanka since the establishment of mercantile capitalism, i.e., the early stages of the colonial plantation economy. After gaining independence from colonial rule, there were brief spells of dominance of social democratic policies that aimed to reduce inequality. The neoliberal regime introduced in 1977 has exacerbated income disparities offsetting the egalitarian trends of the preceding decade.
This trend towards increasing inequality is a common feature of financialised global capitalism, particularly under neoliberal conditions. The super-rich oligarchy in society, often evading foreign exchange regulations and income and other tax rules, acted with detrimental effects on the country’s foreign exchange receipts and tax revenues, contributing to the foreign exchange and fiscal crises of the 2020s.
The rich trading classes (including large industry owners dependent heavily on imported inputs) and those engaged in the underground economy tend to maintain very large funds offshore. The changes in exchange control laws introduced in 2017 have facilitated these practices. Bandarage describes this behaviour as “plunder” by the country’s super-rich through “intentional, dodgy invoicing and stashing the foreign exchange earnings offshore” (p. 13). She refers to a total of US$ 36.833 billion as funds so kept illegally overseas. More recently, a cabinet minister in the incumbent government mentioned an even larger sum, $53.5 billion, held illegally overseas by Sri Lankan oligarchs (see The Island, 24 August 2023).
Either figure can be compared with the officially reported total foreign debt of $49.7 billion at the end of 2022 (Central Bank Annual Report, 2022, pp. 185-6). Furthermore, a significant part of the fiscal deficit issue, lying behind the huge public debt crisis, can be attributed to the non-payment of substantial volumes of tax dues by the wealthiest individuals in society. Tax avoidance and evasion are widely discussed topics. Rich mercantile classes avoid paying not only income tax but also the more revenue-generating indirect taxes of VAT, Import Duty, and Excise taxes.
The next point worth highlighting here is Sri Lanka’s well-known social democratic stance in respect of social policy matters – a matter already referred to briefly. This has been the case even during the post-1977 neoliberal period in matters pertaining to parts of production, trade, and finance. In this respect, the following statement of a leading political analyst is worth citing: ” … (T)he abiding democratic ethos of Sri Lanka (…) has never succumbed to dictatorship of the right or left, despite several civil wars. … This resilient electoral democracy has demonstrated a proclivity for social welfarism. Savage capitalism has never been sustainable here, nor has a foreign policy alien to the values of nonalignment” (Dayan Jayatilleka in The Island, Oct. 26, 2023).
This social ethos came to be established in the Sri Lankan political economy from as early as the 1930s. In 1931, a semi-independent governance system was set up, with a legislature (State Council) elected by the people on universal adult franchise and a Board of Ministers, three-tenths of which comprised of elected State Council members. A strong and widespread left-wing political movement led by a group of charismatic leaders committed to Marxist thinking and practice, developed in the country from this period onwards.
The principal elements of the social democratic stance in social policy, which evolved from this period onwards, was maintained even during the post-1977 neoliberal period. Key aspects of this social democratic ethos include free education, free health services, and the use of consumer and producer subsidies to support the average consumers and small-scale farmers and producers. Although changes have been introduced over time, especially following IMF programmes, the social democratic ethos remains robust. This is a main reason why conventional economic solutions failed to eliminate the dual deficits and debt issues in Sri Lanka.
Out-of-the-box thinking is essential to devise mechanisms that the people can accept to address these economic challenges. The IMF Extended Fund Facility of March 2023 further illustrates the challenges of implementing a stabilization package defined and drafted without giving due care to socio-political peculiarities in Sri Lanka. Policy makers and their advisers are well advised to carefully read Bandarage’s Crisis in search perhaps of useful insights into how policy processes could be modified to achieve improved results.
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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