Features
Dilemmas of The New Norm
Dr Sarala Fernando
The choon (tune) van with bakery products arrived at the door after many weeks marking a sign of life in Colombo returning to normal, that is if you get used to the price-shock, everything doubled or tripled since the freeing of the exchange rate. It seems that Sri Lanka was more integrated into the global economy than had been thought; disdaining domestic import substitution, every manufacturer is raising prices claiming imported components. Or are merchants just cashing in with the lack of effective consumer protection?
Those who have savings in banks will get compensated with enhanced interest payouts but for those with limited or daily wages, coping with the new norm is crippling and despairing. With typical Sri Lanka philanthropy and self reliance mechanisms, hand outs of essential goods, community kitchens and community gardens have been started by private and voluntary organizations, but no one knows how much of the affected population will be reached. It is good to know that at last schools are open and finally, Triposha is up and running with the new booster supplement developed locally. Government health system networks including NGOs are working together with international organizations to address malnutrition in children which has been a lingering problem in Sri Lanka, a trend which began after the rice ration was stopped in the 1970’s.
The wife of the President of Ukraine, Mme Zelenska during a recent interview, had mentioned the surreal circumstances of life in Kyiv, where people are trying to live a normal life, going for walks, drinking a coffee in a cafe during the day despite the horror of the night bomb attacks from the Russian invasion and fear for their loved ones on the front lines. It is something like that in Colombo right now where people are going out to eat in restaurants, holding weddings in hotels, even international sporting events are ongoing despite the country having declared bankruptcy, a looming food crisis and the lack of dollars for basic necessities like fuel, gas, food and medicines. The truth is that people are desperate to lead their normal life today because of the uncertain tomorrow. They are cheered by even a little hope given by the new youthful Sri Lanka cricket team successfully meeting foreign challenges.
Unlike in Ukraine where President Zelensky has proved a master at communication both with the international community and the local population, one problem in Sri Lanka is a total failure of public diplomacy which is putting the government at odds with the people. In Ukraine, the President is seen in combat fatigues equally comfortable receiving foreign leaders while also inspecting the front lines and making a daily broadcast of the military situation to the people, underlining his proximity and sensitivity to their plight.
In this country, well dressed rulers message the public with one way communication, as if lecturing a captive audience; there is no visual of inspecting government activities or hearing the people’s grievances. Perhaps only in this country people are told by the rulers to manage with one meal a day and yet soon after the President is elected in Parliament, live tv broadcasts the traditional tea party enjoyed by mostly well fed parliamentarians. Nor does it help to build confidence when the messages are confused; for example the President’s mention that local debt sustainability is also to be looked at, had sent shock waves in the banking community until the Central Bank chief subsequently discounted this option. The President has recently even suggested nuclear power be included in the national energy plan, oblivious to the fact this proposal (put forward by former Minister Champika Ranawaka) had caused 60 local scientists to write in protest, even before the Fukushima tragedy.
In Japan, well before taxes are increased, there is a publicity programme put in place, to sensitize the public . Yet in Sri Lanka, apart from announcing that there are difficult times ahead and increasing public anxiety, what has the Government done to reassure the people of their plan to protect the most vulnerable? Instead, daily newspapers and social media are rife with tales of cash and other incentives offered to parliamentarians to join an all- party government in a merry- go- round of appointments to high government office. The growing chasm between the people and their elected representatives was voiced by former President Sirisena that he avoided showing his face near the fuel queues for fear of getting assaulted as one of the despised “225”.
The celebration of French National Day in July coinciding with the “aragalaya” reminded of the terrible conditions that triggered the revolution of 1789,- bankruptcy, famine and repression, which led to the overthrow of the ruling monarchy, sending its supporters in the aristocracy and the church to the guillotine. Sri Lanka’s “aragalaya” is different to the “terror” of the French revolution although both aspired to a “system change”. Initially, the “aragalaya” was peaceful and drew support across the island from all communities irrespective of social standing. In the French experience, internecine conflict broke out among the revolution leaders and its leaders like Robespierre also suffered the same fate at the guillotine. In the chaos thereafter, attempts to bring back the monarchy failed to take root and finally a little known soldier, short of stature, named Napoleon emerged, who ended up calling himself Emperor……..
Apart from the lessons of foreign revolutions , we can learn from the experience of the region. India, facing the need for economic reforms in the 1990’s, relied on respected local economists and took the Opposition into their confidence, paving the way for acceptance through parliament. However, when a problem emerges in this country, the traditional approach has been to set up an “independent” commission or new institution which inevitably runs into problems of financing and implementation. For example, faced with Sri Lanka’s infamous laws delays, they have created new courts, appointed new judges and resorted to digitalization. Why did they not accept the sensible simple suggestion by the President of the Law Commission for the existing judges and courts to work a double shift and thereby get rid of the backlog of cases? Or establish time limits for completion of court cases as in Singapore? In this time of crisis, instead of new mechanisms, why not just make use of the existing committees in Parliament, like the party leaders consultations , transformed into a National Council?
Closer to home, can we in the South take lessons from how Jaffna is coping with the present difficulties? For example, the University of Jaffna has not closed on account of the fuel crisis but is continuing to hold sessions with students and teachers coming on bicycles. As an incentive to students they have organized lunch for 1,500 students every day from local donations of rice, coconut and vegetables having to only hire a cook. They are not waiting for foreign assistance but have put the goal of education upfront and the student attendance is high being ensured of at least one good meal every day. The sponsors of the Nallur festival this year fed some 10,000 people lunch every day setting an example for the south to put aside draping stupas with cloth and building ran veta. Jaffna people who have gone through the trauma of the 30-year armed conflict have retained their simplicity and work ethic, many households still cooking with firewood and eating simple vegetarian meals. It would not be surprising if Jaffna also leads the way in renewable energy and water harvesting, setting an example for the South of a way of life that can be best described as smaller, smarter and more sustainable.
We in the South, over-roaded, traffic jams, over-built with untenable concrete hirises which have no adaptation to climate change and all draining the national grid, isn’t it time to call for a change of lifestyle? It is not our strategic location but our natural heritage, the trees, plants, the wild life, the mountains and water sources that since ancient times draws investment, trade and visitors . The question is why our rulers never seem to focus on protecting this natural treasure.
In Nepal and India where the government has supported protection initiatives, numbers of tigers in the wild are doubling because of dedicated teams of rangers. Contrast with Sri Lanka which has the worst rate of elephant- human conflict in the world and even the leopards are dying. Numerous videos of cruelty to domestic elephants and the film of gifted Sri Lanka elephants like Kavan rescued by international petition from a dismal foreign zoo and sent to a sanctuary in Cambodia, are reinforcing negative images of this country.
The dice are rolling unpredictably in Sri Lanka. Who would have thought the oldest democracy in South Asia would see an elected President deposed by an angry population and a new President, without even winning his seat, elected from Parliament? Is President Wickremesinghe an unlikely hero, savior of the nation or is he a scapegoat like in ancient Greek rituals at a time of calamity, cast out of his home and left exposed to the wolves and the elements? With storm clouds gathering amidst growing public unrest, political parties are already strategizing for an election early next year. What hope of system change with spoiled wine in new bottles?
(Sarala Fernando, retired from the Foreign Ministry as Additional Secretary and her last Ambassadorial appointment was as Permanent Representative to the UN and International Organizations in Geneva . Her Ph.D was on India-Sri Lanka relations and she writes now on foreign policy, public diplomacy and protection of heritage).
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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