Features
Evolution from AM radio to Digital TV broadcasting
Parliamentary Acts on Broadcasting and Telecommunications
by DR JANAKA RATNASIRI
The Cabinet of Ministers (COM) has recently decided to update the Parliamentary Acts on Broadcasting, Rupavahini and Telecommunications and introduce a Bill on establishing a Broadcasting Regulatory Commission. Since, all these are interlinked, it is necessary to take a holistic view of them, taking into consideration new developments such as digital broadcasting. Before that, it would be pertinent to consider the historical development of these services.
USE OF ELECTROMAGNETIC WAVES FOR COMMUNICATION
The Electromagnetic (EM) Spectrum comprising EM waves, extends from high energetic gamma rays, X-Rays and ultra-violet rays on one extreme to low energetic visible, infra-red, microwaves and radio waves on the other extreme. All these are generated naturally by the sun, but almost all of the high energetic radiations get absorbed in the upper atmosphere and only the low energetic radiations are received at ground level. They are also generated by man for various applications like X-Rays, microwaves and radio waves. Out of these, microwaves and radio waves are used for telecommunication purposes, commonly referred to as wireless communication.
EM waves comprise oscillating electric and magnetic fields generated when electrons oscillate either in a plasma or in a conductor. These two fields have their directions perpendicular to each other. They cause radiation of energy in the form of a wave travelling in a direction perpendicular to directions of both electric and magnetic fields. They are characterized by the fact their frequency in Hertz (Hz) and wavelength in metres (m) are inversely proportional to each other with their product equal to the speed of light in vacuum which is 299.8 million m/s. It was James Maxwell who presented the theory of EM waves around 1865 while Gustav Hertz demonstrated their existence in 1887 which earned him the Nobel Prize for Physics in 1925.
Hertz’s discovery led to Guglielmo Marconi demonstrating in 1901 that high frequency (HF) waves could be used to send signals across the Atlantic. This caused the birth of the telecommunication industry, for which he received the Nobel Prize for Physics in 1909. Though HF radio waves were used for long distance communication, the mechanism of their propagation over several thousands of kilo-metres was not understood at that time. Theories of propagation available at that time considered only ground wave propagation which has limited range and line-of-sight propagation which also has limited range along the Earth’s surface. Hence, coverage across the Atlantic was a puzzle at that time.
It was left to Edward Appleton to explain this phenomenon when he discovered in 1927 the existence of the ionosphere, a layer of charged particles lying about 100 km above the ground, which bounces off these radio waves back to the Earth when they are incident on it. Appleton received the Nobel Prize for Physics in 1947 for this discovery. It was soon found that radio waves could be used not only for telecommunication purposes, but also for providing voice broadcasting services, known as radio, both within and across countries. HF radio waves remained the only means of long-distance telecommunication as well as broadcasting until the mid-sixties when satellite-based communication took over which came into being, thanks to the vision of Sir Arthur C. Clarke announced in 1945 in the Wireless World Magazine.
DEVELOPMENT OF RADIO BROADCASTING SERVICES
Public broadcasting in Sri Lanka commenced in 1925 as Radio Colombo with limited coverage around the city using only MF transmissions. It expanded to a wider coverage about 10 years later and continued till 1949 when its identity was changed to Radio Ceylon. The services were also extended to provide short wave transmissions to provide island-wide coverage though the service was of poor quality due to inherent ionospheric disturbances. Radio Ceylon had one advertisement-free service in each language for many years and added separate commercial services later. Though Radio Ceylon functioned for many years as a semi-government organization under different Ministries from time to time, it lacked a proper legal framework.
To remedy this situation, the Ceylon Broadcasting Corporation (CBC) Act No. 37 of 1966 was passed in Parliament and the CBC was established in 1967 which brought Radio Ceylon to function under it. The Act was amended thrice, to make SLBC both a regulator and a service provider. One amendment was to change its name to Sri Lanka Broadcasting Corporation (SLBC). Another was for the issue of licenses by the Minister to other persons for the establishment of private broadcasting stations. The amended Act also required an owner of a radio receiver to obtain a licence annually through the Post Office. The Act also requires any person selling, assembling, repairing or renting radio equipment to obtain an annual licence from SLBC to perform that function. Thus, the SLBC performed a dual role of being a service provider and a regulator.
The evolution of radio technology from vacuum tube-based home radio receivers available up to sixties to transistor and integrated circuit based portable radio receivers currently available in the market made it impossible to implement the licensing provision. Hence, this requirement was abolished subsequently, but the provision still remains in the Act. Today, every motor car has a built-in radio receiver and every smart mobile telephone has a built-in radio receiver. Hence, there is a need to amend the SLBC Act to remove this outdated provision.
From the inception, radio broadcasting in Sri Lanka was confined to transmission of amplitude modulated (AM) signals which had limited band-width causing high frequencies in the audio signal getting clipped. This affected the quality of musical programmes severely. These transmissions were in the medium frequency (MF) (or medium waves) for short range coverage and high frequencies (HF) (or short waves) for covering the entire island. The short waves reach the listener after getting reflected from the ionosphere which is a dynamical entity and hence the signals received were not steady and of poor quality. In the sixties, SLBC built several MF transmitters in outstations enabling outstation listeners to have the benefit of receiving quality programmes free of ionospheric disturbances.
In the seventies, the SLBC commenced limited transmissions of signals with frequency modulation (FM) on the very high frequency (VHF) band. These transmissions have higher bandwidth and hence the audio programmes received are of high quality, and also require much less power to transmit. They are also not affected by atmospheric or ionospheric disturbances. The only problem is that their coverage is limited to line-of-sight range. Later the service was extended to provide an island-wide coverage through the installation of several transmitters, most of which are installed on hill-tops to extend the coverage.
Up to the end of the 1980s, the SLBC had the monopoly of operating radio services, but in the nineties and twenties, several private parties, exceeding 20, were issued licences to operate radio services in the FM band. Each service was given two frequencies enabling them to cover the entire island. Most of them, except a few who offered religious programmes, came up with only low quality musical programmes providing requests on payment devoting a major share of air time on advertisements which brought the revenue for their survival. The lack of a suitable mechanism to monitor the quality and content of the programmes aired is a serious shortcoming in the present system.
DEVELOPMENT OF TELEVISION BROADCASTING SERVICES
Television (TV) service was introduced to Sri Lanka in 1979 when a private party launched a service voluntarily. Later, it was taken over by the Government. At that time, there was no policy or regulations on establishing TV services in the country. The Sri Lanka Rupavahini Corporation (SLRC) Act, No. 06 of 1982 was passed under which the SLRC was established with functions of the Corporation to carry on a television broadcasting service within Sri Lanka and to promote and develop that service and maintain high standards in programming in the public interest. The Rupavahini TV service was launched by SLRC using a package gifted by Japan, with the main antenna erected on Mt. Pidurutalagala.
The Act is required to register persons engaged in the production of television programmes for broadcasting; to register persons who carry on the business of importing, selling, manufacturing or assembling television receiving sets; to exercise supervision and control over television programmes broadcast by the Corporation; and to exercise supervision and control over foreign and other television crews, producing television programmes for export, among others.
Thus, the SLRC also has a dual role similar to that of SLBC, of being a service provider and a regulator. However, it lacked the powers to implement the provisions to exercise supervision and control on other TV services as described in the last two items given in the previous section. The SLRC Act has provision to issue licences to qualified parties to establish and operate TV stations. Accordingly, 54 private television licenses have been issued licences so far, whereas only 28 telecasting licensees are in operation at present (Cabinet Decision of 04.03.2020).
The Cabinet of Ministers (COM) at its meeting held on 04.01.2021 has decided to amend the SLRC Act to provide for the expansion of its Board of Directors to empower it to implement decisions taken with a view to face the competitive scenario prevailing in the field. No further amendments have been identified even though the Act is totally out of date considering the developments in the field during the last 19 years. There is a need to bring SLRC under the proposed Broadcasting Regulatory Commission to remove the regulatory functions from it and also to remove the provision to possess a licence by a user.
ESTABLISHING A TELECOMMUNICATION REGULATORY COMMISSION
In early days, the telecommunication services were provided by the Posts and Telecommunication Department, which was later bifurcated into two departments. The government passed the Sri Lanka Telecommunication (SLT) Act No. 25 in 1991 which provided for the establishment of the Sri Lanka Telecommunication Authority (SLTA) which took over the functions of the Telecommunication Department. Among the objectives of the SLTA are to ensure the conservation and proper utilization of the radio frequency spectrum by operators and other organizations and individuals who need to use radio frequencies and to make and enforce compliance with rules to minimize electro-magnetic disturbances produced by electrical apparatus and all unauthorized radio frequency emissions, among others.
The SLT Act was amended by Act No. 27 of 1996 whereby the Telecommunications Regulatory Commission of Sri Lanka (TRCSL) was established in place of SLTA. The amended Act made provisions for receiving complaints from the public and holding public hearings on them and retained all the functions assigned to the SLTA. Its regulatory functions were limited to telecommunication service providers and did not cover the broadcasting of radio or TV services, other than assigning frequencies for them. This is unlike in India where the Telecommunication Authority covered regulation of Broadcasting of Radio and TV services both in terms of technical aspects and quality of programmes.
PROPOSAL FOR ESTABLISHING A BROADCASTING REGULATORY COMMISSION
The COM at its meeting held on 04.03.2020 having considered the necessity of having a separate institution to regulate the activities of the broadcasting and telecasting media based on a Committee recommendation approved a draft for setting up a ”Broadcasting Regulatory Commission” (BRC), and decided to explore the possibility of amending the SLTRC Act, to enable it to perform the task of the process of issuing Broadcasting and Telecasting Licenses, which were hitherto issued by the SLBC and SLRC, respectively. The objective is to remove the regulatory functions from these two organizations and transfer them to the new Commission.
As early as 1997, a Broadcasting Authority Bill was presented to the Parliament for the same purpose but it was held unconstitutional by the Constitutional Court because it did not give adequate independence to the Authority. Thereafter, a Select Committee of Parliament with representation of all parties was appointed to consider the problem and met on multiple occasions but the matter was left in abeyance. Now, it has resurfaced under a new heading – Broadcasting Regulatory Commission. However, its contents are not available in the public domain, not even in the Govt Printer’s website.
Unlike in early days when broadcasted programmes whether radio or TV were available only as free-to-air services, today with advances in technology, particularly TV programmes, are brought to residences using either physical cables or UHF links or satellite links or through the internet. Since free-to-air services are not available island-wide with acceptable quality, people opt for these services upon payment of a monthly fee. But some satellite links do not provide a satisfactory service when it rains, though the service provider claims it provides tomorrow’s technology today.
There is also an urgent need to exercise some control on the utilizing of TV medium for advertising purposes. While there is a positive aspect whereby a viewer receives information on a new product or service, the repetitive display of the same commercial of well-known consumer products is nothing but an annoyance. The writer believes that during prime time, between almost 50% of air time is devoted for commercials and promotional clips. This is in contrast to India where only 10 min of commercials are allowed for every 60 min of air-time. Hence, there is a need to have a regulatory body to ensure that satisfactory services are provided to subscribers, both in terms of the quality of signal received and the quality of programmes aired.
A notable characteristic of Sri Lanka’s TV service providers is that they seem to be very prudish when it comes to airing cinematographic material intended for adult audience, but of high quality which have received accolades at international events. The operator loses no time in blanking even a momentary kissing scene in them. The proposed BRC could lay some guidelines on presenting quality adult programmes which have already been cleared by the National Censor Board enabling the adult audience to enjoy them without subjecting them to additional censorship by TV operators. Perhaps, such programmes could be limited for airing during late hours of the day when children have gone to bed.
TRANSITION FROM ANALOG TV TO DIGITAL TV SYSTEMS
There is a global trend to switch from analogue to digital system for television broadcasting as it offers many advantages among which are better spectrum utilization, higher picture and sound quality, accessibility via mobile devices and new business opportunities. Under the sponsorship of the International Telecommunication Union (ITU), a Roadmap for Transition from Analogue to Digital Terrestrial Television Broadcasting (DTTB) in Sri Lanka was jointly developed in 2012 by a team of ITU experts from Korea and the National Roadmap Team (NRT) chaired by TRCSL.
Digital TV transmission, though will provide a high-quality service, will result in added expenditure both for the service provider and the viewer. In order to reduce the financial burden for the service provider, NRT proposed to establish a set of 8 common digital transmitters at sites already being used for TV transmission, for sharing by all service providers. They are expected to provide initially simultaneous transmissions both on analog and digital systems, so that a viewer will be able to receive programmes uninterruptedly when switching from analog to digital system.
As a follow up to the above proposal, the GoSL assigned a “Feasibility Study on Digital Terrestrial Television Broadcasting Network Project” in 2014, to Japan International Cooperation Agency. (). This study recommended setting up of 16 digital transmitters to be managed by a separate body, with the principal tower at Lotus Tower in Colombo. Individual TV services are expected to send their high definition programmes to Lotus Tower by microwave or other links who will in turn broadcast them from the common set of transmitters. By this means, all the TV channels will be received at the same signal strength anywhere in the country.
It was proposed to establish a body to be known as “Digital Broadcast Network Operator” (DBNO) to organize, manage and administer the new system. DBNO is expected to operate and maintain the entire system with the revenue from the operation fees collected from broadcasting stations. The transition to DTTB will result in incurring heavy expenditure by both DBNO and individual service providers, including installing new antenna systems, purchasing digital studio equipment such as cameras, animators, programme mixers etc. all of which could run into Billions of Rupees.
In addition, viewers will have to purchase either set-top-boxes for use with analog receivers or new digital receivers. It may be recalled that with the new development in TV technology, the earlier Cathode-Ray-Tube (CRT) type TV receivers were replaced by slim type LCD/LED TV receivers during the last couple of years. Today, CRT receivers are no longer available in the market. Hence, changing receivers will not be an issue for our viewers, as long as it carries benefits.
In the event the Government decides to adopt the DTTB system, it will be necessary to introduce new laws and regulations to regulate the new DTTB industry, and considering the complexities involved, it is best if a total new Parliament Act is passed, with appropriate amendments to both the SLRC Act and SLT Act. The COM has already decided to amend both these Acts as mentioned above. It is therefore appropriate if the Committee to be appointed for this purpose also be given the mandate to study the desirability of introducing DTTB in Sri Lanka considering costs and benefits as well as viewer preferences and service provider views.
Though the GoSL entered into an agreement with JICA to pursue the matter in 2014, with the change of Government in 2015, the matter was left in abeyance. Under the new Government, the matter is being considered, but no decision has been made as to when it will be implemented and which DTTB standard to adopt, as learned by the writer when he started writing this piece. However, according to a news item telecast in the evening of 19.01.2021, the Japanese Government has offered assistance to Sri Lanka to switch over to DTTB as described in JICA Report issued in 2014, and the Cabinet Spokesman Minister said that Sri Lanka would soon adopt the new system.
CONCLUSION
Sri Lanka will be completing 100 years of public radio broadcasting in four years hence, and has come a long way going through various stages of development. Initially, there were no separate laws to regulate the industry, and the state-owned service provider used to do that function. This position remains unchanged to date and only recently that the Government has considered establishing separate organizations to provide regulatory function. Only the amendment of SLRC Act and SLT Act are being considered along with setting up a new Commission for regulating broadcasting of radio and television services. Hence, there is a need to consider amending these two Acts together with amending the SLBC Act.
With the proposed introduction of digital television transmission in Sri Lanka as reported by the Cabinet spokesman, the Writer suggests that the amendment of the above three Acts should be taken up along with formulating a new Act to cover Digital Transmission Broadcasting since all four are interlinked, before the actual transition takes place. It is hoped that with the introduction of digital TV transmissions the quality of programme content will also improve concurrently.
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 . )


