Features
Damned if you do, damned if you don’t
Readers may find the title of this article a bit intriguing so let me explain at the outset that it refers to the President’s dilemma. He has had crucial decisions to make after taking over the presidency. Most of the decisions he has taken thus far have been resounding successes. It is abundantly clear that had he not made such tough calls the country would have been damned and as a consequence, so too, the president himself.
Now, having made all the tough calls which have enabled us to see at least a flicker of light at the end of the tunnel, he is still being bashed by those who are thirsting for power and some others who also appear to have personal agendas. In other words he’s damned for getting us out of this disastrous situation or let’s say, putting us on the path to recovery.
It is sad to see some parliamentarians who were hitherto held in high esteem shouting themselves hoarse in their endeavours to throw Ranil Wickremesinghe out of the presidency on the grounds that he wasn’t elected. Don’t they realize that he didn’t get there through a military coup, or even through a constitutional coup. He was legitimately appointed/elected president in accordance with the constitution. Haven’t they heard of Gerald Ford? He too was appointed president in accordance with the US Constitution. For the record, Ford wasn’t even Nixon’s running mate at the US presidential election. He was only appointed Vice President when Spiro Agnew resigned.
When he did contest the presidency he was defeated by Jimmy Carter. Some others, too, keep clamouring for elections. Granted, elections are the right of the people but shouldn’t we look a bit further than that?! The popular belief is that those who represent the present Government will be badly defeated if an election is to be held immediately. The local government elections need to be held first but if as expected the ruling party is soundly beaten there will be additional pressure on the president to dissolve parliament and have a general election. There will even be agitation for the president himself to resign but is that what the country needs at this point of time?! There is the possibility of the Government being brought down but shouldn’t we envisage the consequences if that were to happen?!
Has the Leader of the Opposition even considered such a scenario?! Everything we have achieved thus far in the management of our debt burden will be negated. The cynic may ask “what have we achieved?” Well, those who behave like the ostrich will never understand. Those screaming themselves hoarse calling for elections, making every effort to topple the government will never understand. So let’s place on record the achievements of this government towards this end.
In May 2022, Sri Lanka defaulted on its debt for the first time in her history and faced a doomsday scenario. We were a bankrupt nation, no two words about that. Let us envision what would have followed. We don’t need to be reminded of the parlous state of the economy when Ranil took over as prime minister first and subsequently as president. There were long queues for fuel for days on end, often weeks. It was not uncommon to hear of people dying in fuel queues. LPG for cooking was in short supply. Foreign exchange was not available for our imports. We faced the possibility of extended power cuts. The farmers were one unhappy lot. Cross border transactions by banks would have come to a standstill. The list goes on …… The country was bankrupt.
We depended on the charity of friendly nations merely for survival. While China played hardball, we cannot forget the magnanimous gestures of countries like Japan and India in particular. The president with the support of two stalwart officials, the Governor of the Central Bank and Secretary, Treasury, managed to steer the economy towards a semblance of normalcy.
We should now ask ourselves who are the main protagonists, agitating for the removal of this government. Is it the man on the street? I don’t think so. People who openly blasted the Rajapaksas for bringing the country to its knees are no longer wanting Ranil out. On the contrary they now openly say that he has worked wonders to stabilize the country; a feat no other would have achieved. Personally, my garage mechanic has told me so as has another daily paid worker. My friends who travel by three-wheeler too say that the general opinion of their drivers is that life is not easy but it is far better than what it was eight to 12 months ago. I agree that this feedback may not reflect a statistically representative sample but the general feeling is that the country is now on a more stable footing.
People are not agitating for the president to be sent home. They are not cursing the regime as they did not very long ago. Then who are those who are agitating for immediate change? The main agitators are the opposition MPs who see this as a golden opportunity to gain power and enjoy the plums of office. They are not alone though in their attempts to undermine the Government. There are sections of the media too that appear to be bent on dragging Ranil down, perhaps in accordance with their own personal agendas.
By now his adversaries should have realized that Ranil is his own man. He will not be badgered by anyone into doing what he believes is not in the interests of the country. If he could have taken on the locally based diplomatic community at a time when his position was precarious, and come out on top, handling sections of the media agitating against him will be child’s play. The accusation is often made against him that he is arrogant and harsh in his interaction with people but having observed him closely, I’m convinced that it is simply that he doesn’t suffer fools gladly though that may not be a politically savvy attitude.
Getting back to the sections of the media I was referring to, it has been often reported that a certain media organization turned against him because he refused to give his party’s nominations en bloc to a slate of candidates provided by the head of that organization. He was only prepared to give nominations on merit and thus only a few on the list were successful. Another columnist taking digs at the president sits on an “Independent Commission.” If she thinks he’s doing right, shouldn’t she resign?
It is now common knowledge that others who were being considered for the post of prime minister at the time declined the offer. Not so, Ranil Wickremesinghe. He grabbed the opportunity that came his way, confident that he had the ability to save the country from economic disaster. We can only speculate as to whether it was a lack of confidence in their ability or fear of alienating the voter that made other leaders decline the offer of being appointed prime minister. It is at a time like this, that, in the interests of the country, all are expected to put party politics on the back burner, pull their weight and help put the economy of the country back on track. Have a sort of war time cabinet. Unfortunately that doesn’t happen in Sri Lanka.
Most of the opposition members look at it as an opportune time to bring down the government. Their servile followers too echo the same sentiments, baying for Ranil’s blood. They have not thought beyond that. If you tell them “OK, throw Ranil out. After that, what?” They will sheepishly scratch their heads and say “let me think about that”. It isn’t rocket science to understand that if the government collapses, the IMF will rightly say that there is no stable government in place and pull out. When the IMF does that, so will all the bilateral and multilateral creditors. All the confidence and support of the international community, earned by Ranil, not so easily, I should add, will be completely eroded and we will be back to square one with recovery a near impossibility.
While in the opposition it is easy to oppose every measure taken by the Government but once it is the turn of the opposition to govern, have they the stomach to make difficult decisions? It is laughable how they say they will negotiate terms with the IMF. We are a bankrupt nation and not in a position to dictate to the IMF what we will do and what we will not do. The IMF will not allow the tail to wag the dog.
Recently former President Kumaratunga called Sri Lanka “a failed state” 75 years after independence. Of course “failed state” is subjective in nature and the good ex-president is entitled to her opinion. It may be pertinent to remind her though, that there were times when the economy of the country was not doing too badly. The tenures of Presidents J.R. Jayewardene and R. Premadasa need to be mentioned in this context. In fact during her presidency, too, the economy of country was turning around, no thanks to her but entirely due to the government of the time under the leadership of none other than the present president who was the then prime minister.
Then what happened, the bane of petty politics once again took its toll on the country. The president could not bear to see the progress that was being achieved and in a cowardly manner waited till the prime minister was out of the country and sacked three ministers and took over three crucial ministries. On his return to the country, the support for Ranil was overwhelming. Throngs turned up at the airport to greet him and people lined up on the road from the airport to Colombo to show their support. With all that support, this was the ideal time for him to turn tables on the then president but that was not the style of Ranil Wickremasinghe, the true democrat. While the president’s actions were a manifestation of the petty politics this country has seen since Independence, it was not unconstitutional and Ranil respected the Constitution. Parliament was dissolved subsequently even though the government had a working majority.
So my appeal to political parties is that differences be cast aside and all come together in the formation of a National Government. Of course being part of a National Government doesn’t mean that one should be given the right to place stumbling blocks in the way of an already successful path to recovery.
Outsider
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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