Features
Eighty years in Sri Lanka:The Life and Times of Fr. Vito Perniola SJ

By Avishka Mario Senewiratne
Royal Asiatic Society of Sri Lanka
May 13, 2024
I always wonder how he did it? A simple, slender Italian priest who used the bus to get about. He was one who never compromised on discipline. A stickler for proper diction who spoke a manifold of Western and Oriental languages. A first-rate scholar who realized there was a single door one could walk in and outof between history and social linguistics. He embraced the Lankan heritage by becoming a distinguished citizen of the country just after independence.
Generations not born here will laud and praise the memory of Father Vito Perniola of the Society of Jesus for his exemplary efforts in publishing 19 definitive volumes on the Catholic Church of Sri Lanka. Abstemious by nature, and frugal in food, drink, clothes, and lifestyle, Fr. Vito Perniola was a shining example of plain living and high thinking.
Vito Perniola was born in Bari, South Italy on April 10, 1913, the fifth in a family of 11. His parents were Michele Perniola and Lucia di Gregorio, a well-to-do family. Deeply religious and conservative, they live a spiritual life, guided by their Parish Church. Though Vito’s father wanted him to pursue higher education as layperson, one event changed his life plans. While 11-year-old Vito was praying at the altar of St. Francis Xavier in his Parish Church, he received a strong calling to the priesthood. He discerned at that age that this was his true vocation; to be a Jesuit. With that conviction, he told his parents of his wish. Though upset, they consented.
Vito’s elder brother and two of his sisters would join different religious congregations. In 1925, at the age of 13 years, Vito joined the Society of Jesus. He was determined to be of the same order as St. Francis Xavier. In 1928, he joined the Jesuit Novitiate in Naples. From those early days, he displayed his great talents for studies. It was in Naples that he became aware of the Sacred Heart College, Shembaganur in South India from a catalogue of Jesuits institutions and seminaries. Realizing that this was the country where his saint hero, Xavier had been a missionary, Perniola was determined to receive his formation in India and later be a missionary in Ceylon, a country of which he had heard fascinating stories.
In his writings Perniola states that his time at Shembaganur were the best days of his life. Coming from a conservative Italian background, he encountered an all embracing setting in this part of the world. The weather here was sublime. It was here that he learned English for the first time. After four years of formation and philosophical studies in Shembaganur, Perniola departed for Ceylon, which was British Colony at the time. He had heard of the great work the Belgian and Italian Jesuits had done in the Jesuit Province of Galle since 1893.
In June 1936, Vito Perniola sat the Matriculation Examination. His subjects were English, Mathematics, Latin, Greek and Italian. Till he received his results he learned Sinhala. Perniola spoke fluent, grammatically correct Sinhala with a South Italian accent. He spent his time between serving in Parishes and teaching at St. Aloysius’ College, Galle.
When he was at the stage of deciding what field of studies to pursue, he made a choice that surprised many. He said to his superiors: “… Jesuits had already been in Sri Lanka for 50 years and yet nobody has studied Buddhism. Could I study Buddhism or Pali?” The Superiors supported Perniola’s intention. However, there was nobody within the Jesuit community who could teach him and provide him sources of references. This did not bother Perniola the least as he studied on his own, travelling across the country to study in the best libraries. Within a short time, he learnt both Pali and Sanskrit. He knew these languages better than most locals. It was decided that he be enrolled in Bachelor’s program at the University of London where he studied alone as there was no one to guide him.
In his early writing Perniola says: “The relationship between Pali and Sanskrit is very much like that of Italian and Latin. No Pali grammar can be written without reference to Sanskrit. For Sanskrit I had an excellent grammar; for Pali I had nothing worth the name.” Through perseverance and methodical study, he passed his exams and received his B.A. (Hons) in 1940. The best Pali scholars at the time were mostly German. Their texts elucidating Pali and Sanskrit were noteworthy efforts. To understand Pali better, Perniola studied German, a language difficult to master.
He entered the Papal Seminary, Kandy for his Theological Studies. It was during this time that World War II broke out and Italians in Ceylon were under scrutiny and some were sent for interment. However, the Bishop of Kandy, Msgr. Dom Bernard Regno OSB (an Italian himself), intervened and convinced his close friend, Governor Sir Andrew Caldecott, to spare the seminarians in Kandy. Accordingly, Perniola remained free despite the tensions of the War.
On June 21, 1943, Fr. Perniola was ordained a Priest by Bishop Nicholas Laudadio SJ at the Cathedral of Galle. After serving a few years in parishes such as Hiniduma, Fr. Perniola was appointed to the tutorial staff of St. Aloysius’ College, Galle in 1947. To his great disappointment, he did not have provisions to teach Pali, which was his speciality as there were no Pali classes in St. Aloysius.’ However, as there was a vacancy for teaching history, Fr. Perniola was assigned to teach that subject. It was during this time that he came to know Fr. S G. Perera, the revered historian, who was by then half-paralyzed and a resident of St. Aloysius’ College. Fr. Perera and Fr. Perniola developed a great friendship. Soon, with much support from Fr. Perera, Fr. Perniola had a sound knowledge and understanding of the history of Ceylon. It is ironic that an Italian taught Ceylon history to young Ceylonese boys!
Fr. Perniola taught history to the boys of St. Aloysius’ using the textbook prepared by Fr. Perera in 1932, History of Ceylon for Schools. This book which covered colonial Ceylon, was authoritative and scholarly textbook that remained the standard textbook of all Ceylon schools until the early 1960s. A few years after Fr. Perera’s death in 1956, Fr. Perniolal at the request of the Associated Newspapers of Ceylon Ltd., revised and enlarged Fr. Perera’s textbook. This was a useful contribution that the students and scholars of the time appreciated.
During the early 1930s, Fr. S. G. Perera had begun a project to document the history of the Catholic Church during the Dutch period. He had published a few of these documents, but the project was far from complete. Fr. Perniola took up the challenge to finish this work. In the process of understanding the documents of the Portuguese period, he learnt Portuguese. However, with other work in his ministry, he had to postpone this project. In 1949, Fr. Perniola received distinguished citizenship of the country, approved by D.S. Senanayake, the Prime Minister, and Minister of Defence and External Affairs.
Fr. Perniola was appointed Rector of St. Aloysius’ College for three years. During this period St. Aloysius College, dubbed by some as the ‘University of Galle,’ had some renowned educationists such as Frs. Julius Pogany, Chiriatti, Claude Daly, P. N. Peiris and many others. The school magazine contained scholarly articles by the staff and students. When this magazine, The Aloysian reached the Peradeniya or Colombo campuses of the University of Ceylon, readers were left amazed by the quality of the articles. A few years after his term ended, Fr. Perniola accepted Fr. Peter Pillai OMI’s invitation to join the newly established Aquinas College, Colombo as a lecturer in Pali, teaching the language to Arts students. At that time, Aquinas was affiliated to the University of London.
He enjoyed this new venture but realized that there was no Pali grammar textbook for students. Learning a new and complex language from scratch to degree level, warranted a well composed grammar book. For this purpose, Fr. Perniola himself compiled a textbook called Pali Grammar in 1958. This was one of the best textbooks ever on the language. Many Buddhist monks and others have studied Pali grammar referring to this book without even knowing that the author was an Italian Catholic priest. In 1997, the Pali Text Society of the University of Oxford republished this book as the official Pali Grammar.
Perniola was consulted by many scholars then and now. Dr. C. E. Godakumbura, Prof. Sucharita Gamlath and Dr. Ananda W. P. Guruge have warmly praised his linguistic efforts. Prof. Gamplath, in an article to Silumina on September 29, 2002, stated that “Existing Sinhala Grammars should be revised on the basis of Perniola’s insight”. Dr. Guruge in his autobiography titled Ma Vani Bilinda acknowledges his debt to Perniola’s guidance.
Fr. Perniola was a man with a tremendous sense of discipline in nearly everything he did. He always stuck to the rules and clauses of the language. Though his writings and works were grammatically perfect, at times he lacked style and elegance of writing. Fr. Aloysius Pieris SJ in his tribute to Fr. Perniola states: “It is also true that intense focus on the rules of the game sometimes prevented him from playing the game in style.
“ In 2013, Prof. Ven. Gnanaratana Thera, gave a professional assessment on Perniola, the grammarian (cf. Krinsansa, December 2013, pp. 144-153). The Ven. Thera states that Perniola followed a ‘middle path between overly philological and excessively traditional approaches to Pali grammar. He mastered the scriptural Pali as to have adduced rare, hitherto unmentioned examples of Pali usages to illustrate various grammatical rules.’
Furthermore, the Ven. Thera made a comparison between the German scholar Wilheim Geiger and Fr. Perniola saying the latter was more methodical and incredibly familiar with the language and idiom of Pali. Fr. Perniola’s dissertation on ‘Samasa’ (multi-barreled word compounds) resulted him being awarded a doctorate on linguistics from the University of Poona in 1966.
At Aquinas, Fr. Perniola taught Theology for many years. He was made acting rector when Fr. Tissa Balasuriya OMI was overseas. This was the time that the 1971 JVP insurrection took place. Fr. Perniola also served as the Vice Rector to Fr. W. L. A. Don Peter at Aquinas. During his stay in Colombo, Fr. Perniola became a popular figure among the laity. He was counselor and spiritual guide to many religious and laypeople. Despite his busy schedule, he always made himself available to anyone who sought his guidance. He compiled three useful books on meditation, namely, ‘Touching the Divine’, ‘Abiding in Love’ and ‘Praying with Scriptures’. These books went into several editions and over 10,000 copies have been sold. This has been an essential guide for many seminarians, priests as well as laypeople.
In 1972, Fr. Vito Perniola was appointed as the Provincial of the Jesuits in Sri Lanka. After his term ended, there was much pressure on why no one was continuing what Fr. S. G. Perera had begun on the Catholic Church history during the Dutch period. The recently retired Bishop of Chilaw, Bishop Edmund Peiris, appealed to Fr. Perniola to commence this work. This is how Fr. Perniola embarked on the project for which he is mostly remembered. With the support and blessing of Fr. Thomas Kuriacose SJ, the Provincial, Fr. Perniola started to gather documents for this monumental work.
In the late 1970s, he was awarded a scholarship by the House of Writers of the Society of Jesus in Rome and a research grant from Missio in Germany. This enabled him to travel to Rome, Portugal, and the Netherlands in the quest of tracking and procuring documents pertaining to the Dutch Period in Ceylon, collecting several documents on the Portuguese and British periods as well. He immediately realized that he would have to compile similar volumes for those periods too.
The translations of the Dutch period documents were not easy. With the help of the former Government Assistant Archivist, S. A. W. Mattau and number of other scholars Fr. Perniola translated Dutch and other documents of the period. Documenting the correspondence and reports of the early Oratorian missionaries such as Fr. Joseph Vaz and Fr. Jacome Goncalvez were noteworthy contributions. These documents reveal the cordial relationship between the Kandyan kings and Oratorian missionaries as well as the moderate attitude taken by the Dutch for the benefit of the Catholics during and after Dutch-Kandyan wars. Fr. Perniola quite objectively shares the documents of the time the missionaries fell out with the Nayakkar kings over mistakes on their part. Accordingly, between 1983 and 1985, Fr. Perniola compiled three large tomes on the Dutch Period.
These volumes impressed not only Catholics but also non-Catholics as well. It contained documents that no one ever imagined would see the light of day. These included correspondence of Kandyan Kings, Dutch Governors, Viceroys, Papal Secretaries, missionaries, and others. Fr. Perniola translated them in such a way that the discerning reader would easily understand them. If there were inconsistencies or inaccuracies in the letters, he would state them in the footnotes and give a far more comprehensive detail of what mattered. His works were well supplemented by a carefully compiled glossary, bibliography, and index. Clearly, a researcher who bases his work on these documents compiled by Perniola, can easily profit from them. Fr. Perniola’s introductions to each book sums up his ability to elucidate a sophisticated and well research twist of history. He gave a balanced, objective analysis of the period, people, and events he dealt with, often being critical of the mistakes made by religious missionaries.
Between 1989 and 1991, Fr. Perniola published three volumes on the Portuguese period. They ranged from the years: Volume 1: 1505-1565, Volume II: 1566-1619, Volume III: 1619-1656
When the British arrived in Ceylon, the country was divided into the Kingdom of Kandy and the coastal region which was under colonial rule. The Catholic Church of Ceylon was a single province under Cochin. It was only in 1845 that the island was divided into two vicariates: the Colombo (South) and Jaffna (North) Vicariates. In 1883, Kandy was made a separate Vicariate. After the establishment of the hierarchy of the Catholic Church in Ceylon in 1887, Colombo became an Archdiocese and Jaffna and Kandy became Dioceses. Six years later, the Diocese of Galle and Trincomalee were established. This is the reason why Fr. Perniola compiled 13 volumes on the British Period alone. As those years were close to the present, the number of documents increased by leaps and bounds. Essentially, he had enough content to compile a book covering each year.
In the quest of translating old documents written in a manifold languages such Portuguese, Latin, Dutch, French and others, Fr. Perniola states:
“I try to make the translation readable. Those who wish to study the style of an author, ought to go to the original. Thus, in some way the Italian saying remains true: traduttore, traditore (a translator is a traitor!). But while I have made the translation readable, I have tried to be faithful to the meaning of the text.”
Each and every book by Fr. Perniola was well accepted. Hardly anyone has ever taken the hard road he had in documenting over 10,000 pages of the Catholic Church in Sri Lanka. It is indeed a gigantic contribution. The final years of his life were very challenging as some blocked Fr. Perniola from tracing important documents of the period as they felt challenged. Nevertheless, his final book was published in 2011, when he was 97 years old.
His efforts in documenting history and Pali grammar were barely recognized by the Catholic Church. No one he associated with realized the importance of what he had been diligently working on in the twilight of his life. However, on the verge of turning 100 years, the Royal Asiatic Society of Sri Lanka, of which Fr. Perniola was a member for nearly 70 years, awarded the prestigious Gold Medal of the Society which only a few scholars of yesteryear have been privileged to receive. This was a well-deserved recognition. Fr. Perniola continued writing short articles to the newspapers till he passed away in January 2016.
Fr. Perniola’s legacy will remain in the words and efforts of his very many books. There are many gaps yet to be covered and his 19 volumes on the Catholic Church would save years of research and money for the present and future scholar, for he had methodically included nearly everything relevant in these volumes. Essentially, if one owns these books, he or she has direct access to a well-set archive, supplemented by an index. Following are a few ideas and factors that can be derived after perusing Fr. Perniola’s books:
· The writing of an authoritative account of the history of the Catholic Church in Sri Lanka
· Supplementing local history of Sri Lanka
· The writing of biographies of individuals, accounts of congregations, institutions, events and dioceses
· The reconciliation of past errors and the celebration of triumphant moments in history
· Inter-religious, inter-racial dialogue
Features
The heart-friendly health minister

by Dr Gotabhya Ranasinghe
Senior Consultant Cardiologist
National Hospital Sri Lanka
When we sought a meeting with Hon Dr. Ramesh Pathirana, Minister of Health, he graciously cleared his busy schedule to accommodate us. Renowned for his attentive listening and deep understanding, Minister Pathirana is dedicated to advancing the health sector. His openness and transparency exemplify the qualities of an exemplary politician and minister.
Dr. Palitha Mahipala, the current Health Secretary, demonstrates both commendable enthusiasm and unwavering support. This combination of attributes makes him a highly compatible colleague for the esteemed Minister of Health.
Our discussion centered on a project that has been in the works for the past 30 years, one that no other minister had managed to advance.
Minister Pathirana, however, recognized the project’s significance and its potential to revolutionize care for heart patients.
The project involves the construction of a state-of-the-art facility at the premises of the National Hospital Colombo. The project’s location within the premises of the National Hospital underscores its importance and relevance to the healthcare infrastructure of the nation.
This facility will include a cardiology building and a tertiary care center, equipped with the latest technology to handle and treat all types of heart-related conditions and surgeries.
Securing funding was a major milestone for this initiative. Minister Pathirana successfully obtained approval for a $40 billion loan from the Asian Development Bank. With the funding in place, the foundation stone is scheduled to be laid in September this year, and construction will begin in January 2025.
This project guarantees a consistent and uninterrupted supply of stents and related medications for heart patients. As a result, patients will have timely access to essential medical supplies during their treatment and recovery. By securing these critical resources, the project aims to enhance patient outcomes, minimize treatment delays, and maintain the highest standards of cardiac care.
Upon its fruition, this monumental building will serve as a beacon of hope and healing, symbolizing the unwavering dedication to improving patient outcomes and fostering a healthier society.We anticipate a future marked by significant progress and positive outcomes in Sri Lanka’s cardiovascular treatment landscape within the foreseeable timeframe.
Features
A LOVING TRIBUTE TO JESUIT FR. ALOYSIUS PIERIS ON HIS 90th BIRTHDAY

by Fr. Emmanuel Fernando, OMI
Jesuit Fr. Aloysius Pieris (affectionately called Fr. Aloy) celebrated his 90th birthday on April 9, 2024 and I, as the editor of our Oblate Journal, THE MISSIONARY OBLATE had gone to press by that time. Immediately I decided to publish an article, appreciating the untiring selfless services he continues to offer for inter-Faith dialogue, the renewal of the Catholic Church, his concern for the poor and the suffering Sri Lankan masses and to me, the present writer.
It was in 1988, when I was appointed Director of the Oblate Scholastics at Ampitiya by the then Oblate Provincial Fr. Anselm Silva, that I came to know Fr. Aloy more closely. Knowing well his expertise in matters spiritual, theological, Indological and pastoral, and with the collaborative spirit of my companion-formators, our Oblate Scholastics were sent to Tulana, the Research and Encounter Centre, Kelaniya, of which he is the Founder-Director, for ‘exposure-programmes’ on matters spiritual, biblical, theological and pastoral. Some of these dimensions according to my view and that of my companion-formators, were not available at the National Seminary, Ampitiya.
Ever since that time, our Oblate formators/ accompaniers at the Oblate Scholasticate, Ampitiya , have continued to send our Oblate Scholastics to Tulana Centre for deepening their insights and convictions regarding matters needed to serve the people in today’s context. Fr. Aloy also had tried very enthusiastically with the Oblate team headed by Frs. Oswald Firth and Clement Waidyasekara to begin a Theologate, directed by the Religious Congregations in Sri Lanka, for the contextual formation/ accompaniment of their members. It should very well be a desired goal of the Leaders / Provincials of the Religious Congregations.
Besides being a formator/accompanier at the Oblate Scholasticate, I was entrusted also with the task of editing and publishing our Oblate journal, ‘The Missionary Oblate’. To maintain the quality of the journal I continue to depend on Fr. Aloy for his thought-provoking and stimulating articles on Biblical Spirituality, Biblical Theology and Ecclesiology. I am very grateful to him for his generous assistance. Of late, his writings on renewal of the Church, initiated by Pope St. John XX111 and continued by Pope Francis through the Synodal path, published in our Oblate journal, enable our readers to focus their attention also on the needed renewal in the Catholic Church in Sri Lanka. Fr. Aloy appreciated very much the Synodal path adopted by the Jesuit Pope Francis for the renewal of the Church, rooted very much on prayerful discernment. In my Religious and presbyteral life, Fr.Aloy continues to be my spiritual animator / guide and ongoing formator / acccompanier.
Fr. Aloysius Pieris, BA Hons (Lond), LPh (SHC, India), STL (PFT, Naples), PhD (SLU/VC), ThD (Tilburg), D.Ltt (KU), has been one of the eminent Asian theologians well recognized internationally and one who has lectured and held visiting chairs in many universities both in the West and in the East. Many members of Religious Congregations from Asian countries have benefited from his lectures and guidance in the East Asian Pastoral Institute (EAPI) in Manila, Philippines. He had been a Theologian consulted by the Federation of Asian Bishops’ Conferences for many years. During his professorship at the Gregorian University in Rome, he was called to be a member of a special group of advisers on other religions consulted by Pope Paul VI.
Fr. Aloy is the author of more than 30 books and well over 500 Research Papers. Some of his books and articles have been translated and published in several countries. Among those books, one can find the following: 1) The Genesis of an Asian Theology of Liberation (An Autobiographical Excursus on the Art of Theologising in Asia, 2) An Asian Theology of Liberation, 3) Providential Timeliness of Vatican 11 (a long-overdue halt to a scandalous millennium, 4) Give Vatican 11 a chance, 5) Leadership in the Church, 6) Relishing our faith in working for justice (Themes for study and discussion), 7) A Message meant mainly, not exclusively for Jesuits (Background information necessary for helping Francis renew the Church), 8) Lent in Lanka (Reflections and Resolutions, 9) Love meets wisdom (A Christian Experience of Buddhism, 10) Fire and Water 11) God’s Reign for God’s poor, 12) Our Unhiddden Agenda (How we Jesuits work, pray and form our men). He is also the Editor of two journals, Vagdevi, Journal of Religious Reflection and Dialogue, New Series.
Fr. Aloy has a BA in Pali and Sanskrit from the University of London and a Ph.D in Buddhist Philosophy from the University of Sri Lankan, Vidyodaya Campus. On Nov. 23, 2019, he was awarded the prestigious honorary Doctorate of Literature (D.Litt) by the Chancellor of the University of Kelaniya, the Most Venerable Welamitiyawe Dharmakirthi Sri Kusala Dhamma Thera.
Fr. Aloy continues to be a promoter of Gospel values and virtues. Justice as a constitutive dimension of love and social concern for the downtrodden masses are very much noted in his life and work. He had very much appreciated the commitment of the late Fr. Joseph (Joe) Fernando, the National Director of the Social and Economic Centre (SEDEC) for the poor.
In Sri Lanka, a few religious Congregations – the Good Shepherd Sisters, the Christian Brothers, the Marist Brothers and the Oblates – have invited him to animate their members especially during their Provincial Congresses, Chapters and International Conferences. The mainline Christian Churches also have sought his advice and followed his seminars. I, for one, regret very much, that the Sri Lankan authorities of the Catholic Church –today’s Hierarchy—- have not sought Fr.
Aloy’s expertise for the renewal of the Catholic Church in Sri Lanka and thus have not benefited from the immense store of wisdom and insight that he can offer to our local Church while the Sri Lankan bishops who governed the Catholic church in the immediate aftermath of the Second Vatican Council (Edmund Fernando OMI, Anthony de Saram, Leo Nanayakkara OSB, Frank Marcus Fernando, Paul Perera,) visited him and consulted him on many matters. Among the Tamil Bishops, Bishop Rayappu Joseph was keeping close contact with him and Bishop J. Deogupillai hosted him and his team visiting him after the horrible Black July massacre of Tamils.
Features
A fairy tale, success or debacle

Sri Lanka-Singapore Free Trade Agreement
By Gomi Senadhira
senadhiragomi@gmail.com
“You might tell fairy tales, but the progress of a country cannot be achieved through such narratives. A country cannot be developed by making false promises. The country moved backward because of the electoral promises made by political parties throughout time. We have witnessed that the ultimate result of this is the country becoming bankrupt. Unfortunately, many segments of the population have not come to realize this yet.” – President Ranil Wickremesinghe, 2024 Budget speech
Any Sri Lankan would agree with the above words of President Wickremesinghe on the false promises our politicians and officials make and the fairy tales they narrate which bankrupted this country. So, to understand this, let’s look at one such fairy tale with lots of false promises; Ranil Wickremesinghe’s greatest achievement in the area of international trade and investment promotion during the Yahapalana period, Sri Lanka-Singapore Free Trade Agreement (SLSFTA).
It is appropriate and timely to do it now as Finance Minister Wickremesinghe has just presented to parliament a bill on the National Policy on Economic Transformation which includes the establishment of an Office for International Trade and the Sri Lanka Institute of Economics and International Trade.
Was SLSFTA a “Cleverly negotiated Free Trade Agreement” as stated by the (former) Minister of Development Strategies and International Trade Malik Samarawickrama during the Parliamentary Debate on the SLSFTA in July 2018, or a colossal blunder covered up with lies, false promises, and fairy tales? After SLSFTA was signed there were a number of fairy tales published on this agreement by the Ministry of Development Strategies and International, Institute of Policy Studies, and others.
However, for this article, I would like to limit my comments to the speech by Minister Samarawickrama during the Parliamentary Debate, and the two most important areas in the agreement which were covered up with lies, fairy tales, and false promises, namely: revenue loss for Sri Lanka and Investment from Singapore. On the other important area, “Waste products dumping” I do not want to comment here as I have written extensively on the issue.
1. The revenue loss
During the Parliamentary Debate in July 2018, Minister Samarawickrama stated “…. let me reiterate that this FTA with Singapore has been very cleverly negotiated by us…. The liberalisation programme under this FTA has been carefully designed to have the least impact on domestic industry and revenue collection. We have included all revenue sensitive items in the negative list of items which will not be subject to removal of tariff. Therefore, 97.8% revenue from Customs duty is protected. Our tariff liberalisation will take place over a period of 12-15 years! In fact, the revenue earned through tariffs on goods imported from Singapore last year was Rs. 35 billion.
The revenue loss for over the next 15 years due to the FTA is only Rs. 733 million– which when annualised, on average, is just Rs. 51 million. That is just 0.14% per year! So anyone who claims the Singapore FTA causes revenue loss to the Government cannot do basic arithmetic! Mr. Speaker, in conclusion, I call on my fellow members of this House – don’t mislead the public with baseless criticism that is not grounded in facts. Don’t look at petty politics and use these issues for your own political survival.”
I was surprised to read the minister’s speech because an article published in January 2018 in “The Straits Times“, based on information released by the Singaporean Negotiators stated, “…. With the FTA, tariff savings for Singapore exports are estimated to hit $10 million annually“.
As the annual tariff savings (that is the revenue loss for Sri Lanka) calculated by the Singaporean Negotiators, Singaporean $ 10 million (Sri Lankan rupees 1,200 million in 2018) was way above the rupees’ 733 million revenue loss for 15 years estimated by the Sri Lankan negotiators, it was clear to any observer that one of the parties to the agreement had not done the basic arithmetic!
Six years later, according to a report published by “The Morning” newspaper, speaking at the Committee on Public Finance (COPF) on 7th May 2024, Mr Samarawickrama’s chief trade negotiator K.J. Weerasinghehad had admitted “…. that forecasted revenue loss for the Government of Sri Lanka through the Singapore FTA is Rs. 450 million in 2023 and Rs. 1.3 billion in 2024.”
If these numbers are correct, as tariff liberalisation under the SLSFTA has just started, we will pass Rs 2 billion very soon. Then, the question is how Sri Lanka’s trade negotiators made such a colossal blunder. Didn’t they do their basic arithmetic? If they didn’t know how to do basic arithmetic they should have at least done their basic readings. For example, the headline of the article published in The Straits Times in January 2018 was “Singapore, Sri Lanka sign FTA, annual savings of $10m expected”.
Anyway, as Sri Lanka’s chief negotiator reiterated at the COPF meeting that “…. since 99% of the tariffs in Singapore have zero rates of duty, Sri Lanka has agreed on 80% tariff liberalisation over a period of 15 years while expecting Singapore investments to address the imbalance in trade,” let’s turn towards investment.
Investment from Singapore
In July 2018, speaking during the Parliamentary Debate on the FTA this is what Minister Malik Samarawickrama stated on investment from Singapore, “Already, thanks to this FTA, in just the past two-and-a-half months since the agreement came into effect we have received a proposal from Singapore for investment amounting to $ 14.8 billion in an oil refinery for export of petroleum products. In addition, we have proposals for a steel manufacturing plant for exports ($ 1 billion investment), flour milling plant ($ 50 million), sugar refinery ($ 200 million). This adds up to more than $ 16.05 billion in the pipeline on these projects alone.
And all of these projects will create thousands of more jobs for our people. In principle approval has already been granted by the BOI and the investors are awaiting the release of land the environmental approvals to commence the project.
I request the Opposition and those with vested interests to change their narrow-minded thinking and join us to develop our country. We must always look at what is best for the whole community, not just the few who may oppose. We owe it to our people to courageously take decisions that will change their lives for the better.”
According to the media report I quoted earlier, speaking at the Committee on Public Finance (COPF) Chief Negotiator Weerasinghe has admitted that Sri Lanka was not happy with overall Singapore investments that have come in the past few years in return for the trade liberalisation under the Singapore-Sri Lanka Free Trade Agreement. He has added that between 2021 and 2023 the total investment from Singapore had been around $162 million!
What happened to those projects worth $16 billion negotiated, thanks to the SLSFTA, in just the two-and-a-half months after the agreement came into effect and approved by the BOI? I do not know about the steel manufacturing plant for exports ($ 1 billion investment), flour milling plant ($ 50 million) and sugar refinery ($ 200 million).
However, story of the multibillion-dollar investment in the Petroleum Refinery unfolded in a manner that would qualify it as the best fairy tale with false promises presented by our politicians and the officials, prior to 2019 elections.
Though many Sri Lankans got to know, through the media which repeatedly highlighted a plethora of issues surrounding the project and the questionable credentials of the Singaporean investor, the construction work on the Mirrijiwela Oil Refinery along with the cement factory began on the24th of March 2019 with a bang and Minister Ranil Wickremesinghe and his ministers along with the foreign and local dignitaries laid the foundation stones.
That was few months before the 2019 Presidential elections. Inaugurating the construction work Prime Minister Ranil Wickremesinghe said the projects will create thousands of job opportunities in the area and surrounding districts.
The oil refinery, which was to be built over 200 acres of land, with the capacity to refine 200,000 barrels of crude oil per day, was to generate US$7 billion of exports and create 1,500 direct and 3,000 indirect jobs. The construction of the refinery was to be completed in 44 months. Four years later, in August 2023 the Cabinet of Ministers approved the proposal presented by President Ranil Wickremesinghe to cancel the agreement with the investors of the refinery as the project has not been implemented! Can they explain to the country how much money was wasted to produce that fairy tale?
It is obvious that the President, ministers, and officials had made huge blunders and had deliberately misled the public and the parliament on the revenue loss and potential investment from SLSFTA with fairy tales and false promises.
As the president himself said, a country cannot be developed by making false promises or with fairy tales and these false promises and fairy tales had bankrupted the country. “Unfortunately, many segments of the population have not come to realize this yet”.
(The writer, a specialist and an activist on trade and development issues . )