Features
Ending the Dispossession of Northern Fishers by Indian Trawlers
Prof. Oscar Amarasinghe and Dr. Ahilan Kadirgamar
(Chancellor of the Ocean University and Senior Lecturer, Jaffna University, they are also, President and Executive Committee member respectively, of the Sri Lanka Forum for Small Scale Fisheries – SLFSSF)
From the beginning of the early 1980s, trawlers, from Tamil Nadu, have been crossing the International Maritime Boundary Line (IMBL) and illegally fishing in the Palk Bay waters of northern Sri Lanka, damaging the ecosystem by bottom trawling, smuggling fisheries resources, belonging to the northern Sri Lankan fishers, damaging their fishing equipment, and undermining their livelihoods. Diverse types of interventions, by the two governments, dialogues between the fishers of the two countries, involvement of civil society actors, and others, have done little to prevent human suffering, economic losses and the volatile political situation disturbing the relations between two friendly countries that have emerged from this 40-year long story of resource piracy. The northern Sri Lankan fishers, who suffered 30 years of civil war have had enough and there is an urgent need to end this crisis.
Extracting and devastating resources
Both Sri Lankan and Indian fishers used to share the Palk Bay waters (historic waters) in the past, which they did in harmony. However, post-war developments saw radical changes in the structure and organisation in fisheries, the expansion of the market and the establishment of borders separating the Palk Bay region, all of which had tremendous influence on fisheries, especially on the type of technology employed (craft-gear combinations), target species, fishing pressure and area of operation. In this process of change, a tremendous increase in Indian trawlers was observed, which finally resulted in a serious decline of fisheries resources on the Indian side of the Palk Bay and crossing of the IMBL by the Indian trawl fleet to fish in Sri Lankan waters.
In northern Sri Lanka, over 37,000 fishers operate more than 11,650 boats, the majority of which are 18 feet FRP boats propelled by outboard engines of 8 to 25hp. Including post-harvest sector employment and dependents, about 200,000 people in the Northern Province are dependent on the sector. They don’t stand a chance against the 2500 odd 30-60 feet trawlers from Tamil Nadu propelled by 70-190hp outboard engines. Indian trawl boats are crossing the International Maritime Boundary Line (which was established in 1974 and 1976) to fish on the Sri Lankan side of the Palk Bay. These boats are poaching in Sri Lankan waters in large numbers as well as extracting and devastating the resources belonging to Sri Lankan fishers. Although the process of poaching commenced in a situation where Sri Lankan fishers in the North had limited fishing opportunities due to the civil war. Today the issue has become one of the most important economic and political issues in the country, because with the end of the war in 2009, the Sri Lankan fishers in the North has commenced fishing.
The Palk Bay Pirates
Trawlers come at night, three days a week, smuggle colossal amounts of fisheries resources, and damage Sri Lankan fishers’ nets, causing enormous financial losses. To avoid the trawlers, Sri Lankan fishers often stay at home instead of going out to sea, thus loosing valuable fishing time. They are forced to adopt less-profitable, near shore operations and/or resort to destructive fishing practices (trawling, wing nets, purse seining, dynamiting, etc.). The social institutions of the fishing communities, particularly fisheries co-operatives present in every village, have been weakened due to the long decline of fishing incomes, where a fraction of such incomes are normally contributed to run the co-operatives. Thus, participatory management and coastal support for fishing communities have been undermined. The long disruption of fisheries after the war has made it difficult for fishing communities to plan for the next season, and many are slowly moving out of the fishing sector to other forms of day wage labour.
In the early years, arrests of Indian trawlers for poaching were made for security reasons, because the Sri Lanka Navy, which was fighting a war, was less interested in fisheries issues. But since the cessation of the war, the Navy arrested the intruders for illegal entry into Sri Lankan territory. The arrests were made under the Foreign Fishing Boat Regulations Act No. 59 of 1979, Immigration Act of Sri Lanka and the Prevention of Terrorism Act. The impact of the arrests in preventing Indian trawl intrusion was neutralised by the arrests of Sri Lankan multiday fishers for poaching in Indian Territory, and detained in Indian prisons. Often, through the intervention of the embassies of the two countries, the Indian trawler fishers arrested and detained in Sri Lankan prisons were released in exchange for Sri Lankan fishers detained in India.
Early Interventions
In trying to deal with this escalating crisis, the two governments drew up an MOU in 2005, which made provision for the establishment of a Joint Working Group (JWG), which among other things, would deal with issues of poaching and arrests. Although several rounds of discussions were held since 2008, no significant developments were reported, other than agreeing that fishers in both countries should be able to pursue fishing activity in a safe, secure and sustainable manner. However, some progress was achieved in the front of fisher-fisher dialogues. Several such dialogues have taken place in the past, initially organised by ARIF (Alliance for the Release of Innocent Fishermen) and later with the active involvement of the two governments. The most important of such dialogues took place in August 2010, where the Indians agreed to stop mechanised trawl fishing in Sri Lankan waters within a period of one year, during which time, only 70 days of trawling were to be allowed. Unfortunately, the governments failed to back up these decisions, and the promises were not kept. Further dialogues took place under state patronage in March 2011 and January 2014, which did not produce any fruitful results.
Post-2015 developments
In April 2015, President Maithripala Sirisena convened a meeting with the various arms of the state and the northern fisher leaders on the request of the Tamil National Alliance (TNA). This high level meeting and continued engagement gave the fisher folk the confidence that their plight was a matter of serious concern to the Government, and initiated bipartisan engagement on the issue, leading to significant progress. The Parliamentary debate in October 2015 on the ecological and socio-economic damage by Indian trawlers, growing awareness through media coverage and the greater involvement of actors in Colombo, raised the fisheries conflict to the level of a national issue, rather than a problem confined to the North. Fisher leaders also took their issue to court and actively sought legal recourse towards prolonged confiscation of trawlers, and a ban of trawling in Sri Lanka. An Amendment to the Fisheries and Aquatic Resources Act banning bottom trawling in Sri Lanka was passed by Parliament in July 2017.
On another front, the Indian Government, in 2015, made unambiguous statements that Tamil Nadu trawlers should stop cross-border fishing. Furthermore, the increased media attention on the devastation caused to Northern Fishers exposed Tamil Nadu’s hypocrisy. The Tamil Nadu Government called for INR 1,520 crore (USD 225 million) package to convert the trawler fleet to deep sea vessels under the ‘Blue Revolution Scheme’., of which INR 450 crore (USD 66 million) was approved by the Government in Delhi, and the rest was to come from bank loans. By September 2019, close to 590 trawlers have applied for this facility. Although concerns were raised about whether such a conversion to deep sea fishing and buy back is realistic and sustainable, the engagement from Tamil Nadu pointed to an acknowledgement of the unsustainability of trawling and poaching.
An important development was the setting up of a Joint Working Group in November 2016 during ministerial talks held between India and Sri Lanka (revitalising what was formed in 2005), which would meet every three months and a meeting between the Ministers for Fisheries every six months.
The Terms of Reference for the Joint Working Group (JWG) included: i. expediting the transition towards ending the practice of bottom trawling at the earliest, ii. working out the modalities for the Standard Operating Procedures (SOPs) for handing over of apprehended fishermen, and iii. ascertaining possibilities for cooperation on patrolling. Both Governments agreed on setting up a hotline between the two Coast Guards. Agreement was also reached on the request by the Fishermen Associations that there should be no violence and no loss of life in the handling of fishermen by the Navies and Coast Guards of the two countries. They agreed to encourage the Fishermen Associations of the two countries to meet every six months to take further their dialogue. Yet, many of the decisions taken at the bilateral Ministerial talks were not followed through towards a permanent solution.
As a result of campaigns of small scale fishers from the North, the work of researchers and activists and engagement with the governments of the two countries, and more importantly, the enforcement of the Foreign Fishing Boat Regulations (amendment) Act, a significant reduction in the incidence of Indian trawlers illegally fishing in Sri Lankan waters was noticed by 2018. Yet, the Northern fishers did not even have a breathing space for a new beginning, because the country was hit by the Covid Pandemic in early 2020. Very little action was paid against the poachers and there has been a resurgence of the incidence of Indian trawlers poaching in Sri Lankan waters, drastically affecting fishing livelihoods, which were already being threatened by the pandemic. The aggravated current situation, continues to dispossess the small scale fishers of the North; they were devastated by the war until 2009, crippled by the Indian trawlers in the decade after the war and impoverished by market disruptions with the Covid-19 pandemic since March 2020.
Moving forward
The decision to arrest and retain trawlers that are crossing over the International Maritime Boundary Line (IMBL) by the Sri Lanka Navy, particularly since 2013, places significant pressure on the Tamil Nadu establishment. Yet, the lower levels of arrests over the last two years (71 vessels were arrested in 2017 while only nine were arrested in 2020) is in part due to fears of the Covid-19 virus spreading through arrests. Evidently, expanding deterrence is of paramount importance in dealing with the present crises, which needs strict enforcement of the Foreign Fishing Boats Regulations (Amendment) Act, No. 01 of 2018 to arrest foreign vessels in Sri Lankan EEZ which has provisions for imposing heavy fines on trawl owners ranging from Rs. 4 – 15 million. The Trawl Ban Act. No. 11 of 2017 should also be implemented. Given that Indo-Sri Lankan relations are currently of great importance, where the priorities for both governments are in furthering trade, investment and defence ties between the two countries, deterrence is to be employed carefully. There is the need for a broader strategy that asserts pressure at different levels to ensure that Tamil Nadu addresses the issue of poaching by their trawlers; particularly given that fisheries is a devolved subject in India. Pushing for joint patrolling operations by the Indian and Sri Lankan Navy could be strategic. The Indian side needs to be convinced to install vessel monitoring devices on their trawlers to track their location. However, these efforts will prove futile unless the incidence of Sri Lankan multiday boats violating Indian maritime boundaries is brought under control.
Raising the issue both by the Sri Lankan Government towards the Indian Government and the TNA and Tamil political actors towards Tamil Nadu would be strategic, given the political realities. Strong emphasis should be made on the devastating impact of resource smuggling on the livelihoods of Northern fishing populations of Sri Lanka. Strategies to work with the newly elected Government in Tamil Nadu in relation to the fishing conflict will be necessary. Engagement by the Tamil fishing community and community leaders from the North will prove important for challenging a change of stance by Tamil Nadu Government and its leaders.
Thousands of nets worth millions of Rupees have been lost in the past decade, with no single fisherman ever being compensated and with no insurance being available. Fishers now deserve financial reparations for their lost assets and for lost fishing days. Financial reparations can also be asked from the Tamil Nadu fishers, the Tamil Nadu government or the Indian government. If such demands, however, are not met in the short term, the Sri Lankan government itself may need to find the required funds. A campaign for reparations for northern Sri Lankan fishers will help consolidate the demand for a permanent solution to the fishing conflict.
The larger aim of interventions in the Palk Bay should be to establish a sustainable, comprehensive, and socially just fisheries. Current data on the state of fish stocks in this region are highly deficient. Similarly, very little scientific knowledge on the damage caused to the environment by trawling is currently available. There is an urgent need for NARA to intensify research in the Palk Bay. This can provide the foundation for developing a rational and legitimate framework for fisheries governance. Such research will also continue to weigh on the need for a permanent solution that ends bottom trawling in the Palk Bay.
While the fisher-to-fisher negotiations conducted in Chennai in 2010 were initially widely acknowledged as promising, the follow-up was poor. Similarly, the Ministerial level talks in November 2016 were significant and even led to considerable changes, however, again follow up was poor. There is a need to build on the tremendous gains of those talks, regardless of the change of Government.
At the current moment there should be a clear plan recognising the realities in Sri Lanka and India, including the political changes in Tamil Nadu and the Covid-19 pandemic to work through a process of consensus building, but with firm resolve to end bottom trawling. There should be no setback on issues agreed at the Ministerial level talks in November 2016, and calls for licensing cross border fishing should be rejected outright.
Concluding remarks
The measures suggested above will be important steps towards resolving the Palk Bay fisheries conflict. Such measures along with the recent national attention on fisheries can also lay the foundation to ensure sustainable governance and management of the natural resource base and the people who depend on it. The establishment of effective interactive platforms (e.g., strengthening fisher community organizations, co-management platforms) and clearly laid down rights and responsibilities of participating actors, along with consultation, collaboration and coordination of all concerned actors can lead to effective and sustainable policies. Indeed, sustaining small scale fisheries in addition to solving the Palk Bay fishing conflict will encompass dialogue among relevant actors, capacity development, law enforcement and empowerment of coastal communities.
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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