Features
Flashbacks of reinforcing 13A
By Austin Fernando
Prime Minister Mahinda Rajapaksa has recently said that the Provincial Council (PC) elections will be held when the ground situation is conducive. Minister Sarath Weerasekara insists on scrapping the PCs. Ambassador Nalin de Silva has opined that in the absence of elected PCs, the 13th Amendment to the Constitution (13A) stands abolished.
There are three competing standpoints: (a) Legally, the PM believes the 13A is intact; (b) Conceptually, Minister Weerasekara believes 13A is live, but must be “killed”; and (c) Cavalierly, Ambassador de Silva thinks it is already dead! Thankfully, sanity prevailed when Sagara Kariyawasam MP, following the PM’s statement said: “The 13A remains part of the Constitution, and elections will have to be conducted” and “PCs cannot be indefinitely run by Governors and officials.”
13A and devolutionary dynamism
Against this background, I read an article by my respected and adored guru, Professor Gerald Peiris. He urged abolishing the PCs and replacement by constitutional devices, to ensure: (a) genuine power-sharing, and (b) statutorily protect Sri Lanka’s sovereignty/ territorial integrity. He revisits the Dutch and British times, articulating a rich historical analysis of how the provinces evolved. There is other analysis as regards the provinces like that by Professor Madduma Bandara.
Although no government implemented the 13A in full, leading politicians and political parties, undecided or against or silent on 13A, attempted to reinforce devolution by creating Regional Councils (RCs) between 1997 and 2000.
President Mahinda Rajapaksa internationally validated 13A by incorporating it in the UNHRC Resolution in 2009, which the Yahapalana government repeated in the Co-sponsored UNHRC Resolution in 2015. Therefore, I hope PM Mahinda Rajapaksa and yahapalana leaders may not conscientiously demand the repealing of 13A.
These developments are not discussed by Prof. Peiris, while I consider them as important, because they are attached to international diplomacy, the All-Party Conference recommendations, and other influences and consequences.
Anyway, conceptually devolution has come to stay. It has also inputted political dynamism. The Tamil political parties, India, internationals and Diaspora groups, and our political leaders across the divide (excepting President Gotabaya Rajapaksa, who was apolitically inclined then) have virtually contributed to the creation of this status. However, due to the continuity requirement, President Gotabaya Rajapaksa’s stand is appreciated.
One formidable influencing factor is India. She has shown interest in our devolution under successive governments. This has been clear from the policies of Prime Ministers Rajiv Gandhi, Manmohan Singh, and now Narendra Modi, who has made his position clear to President Gotabaya Rajapaksa and PM Mahinda Rajapaksa. (See: “Crisscrossing 13A Abolition”- November 13th, 2020 – The Island)
These interventions are probably forgotten by our leaders who were instrumental in enhancing devolution. We hardly hear from them about such interventions nowadays. The younger generation of first timers in Parliament who support the 13A erasure proposition are either unaware of this past or being conformist.
That the aforesaid leaders did help enhance devolution does not mean that there were no hostile moves to undermine it. A case in point is the late President R. Premadasa’s Transfer of Power Act, through which the District Administration was disturbed, and the Divisions were institutionally brought under direct central control, at the expense of the powers of the PCs. Similarly, the lowest village level functionaries, i. e. Grama Niladharis were brought under the Ministry of Home Affairs by President DB Wijetunga.
Reinforcing devolution
One notable attempt to enhance devolution was the ‘Proposals for Constitutional Reforms’ of 1997, mooted by President Chandrika Kumaratunga. The then ministers Mahinda Rajapaksa, Chamal Rajapaksa, Nimal Siripala de Silva, GL Peiris and Susil Premjayanth were supportive of it. But they would not talk about it today!
The second attempt at the reinforcement of devolution was the Bill to repeal and replace the Sri Lankan Constitution in August 2000. The above-mentioned personages were in power and supported the changes proposed. Now, they are silent on that.
I wonder whether the former Chief Ministers who are MPs now, such as Susil Premjayanth, Chamara Sampath, Shan Wijaylal de Silva, CV Wigneswaram, and Nazeer Ahamad and former Provincial Governor Seetha Arambepola are supportive of reinforcing devolution.
Chandrika Kumaratunga, when she was the Chief Minister of the Western Province, having passed a PC resolution, ably supported by Susil Premjayanth, Felix Perera et al, vehemently demanded the devolution of police powers; but she did not care to grant the PCs police powers after becoming the President. Since there is no LTTE conflict now, I wonder whether Minister Susil Premjayanth will call for devolving police powers to the provinces now.
Before the Romesh de Silva Committee to formulate a new Constitution was appointed, there were proposals made to amend the Constitution. The 13A is material to devolution and PCs. Even 17A, 18A, and 19A which mostly dealt with governance did not attempt changes to 13A.
The constitutional reform proposals which took devolution seriously were the ones presented in 1997 and 2000, and the Steering Committee proposals (post-2015). The latter did not lead to a formal consensus. One important difference with the current exercise is that the yahapalana project had a Steering Committee of the Constitutional Assembly, whereas the current exercise is a government affair without any parliamentary participation. The worst way to formulate Constitutions! This could be due to the two-thirds majority of the incumbent government in the Parliament.
Out of the six Sub Committees appointed by the Yahapalana Steering Committee- some headed by currently pro-government politicians such as Ministers Premjayanth (Public Service Reforms), Bandula Gunawardena (Finance), and from the Opposition Sagala Ratnayaka (Public Security), MP D Siddharthan (Center – Periphery Relations), four were related to devolution. The other two were on Judiciary and Fundamental Rights. I believe the current committee deliberating on a new Constitution could gain from these Sub-Committee Reports, without reinventing the wheel if it so wishes.
Years 1997 and 2000 devolution proposals
The 1997 and 2000 constitutional reform proposals are available in print. Very recently, Professor Gerry Peiris has discussed the evolutions of Provinces, probably because he was concentrating on the historical progression. Since this evolution is dynamic, I may discuss some selected aspects (due to space constraints) of reinforcing devolution. It is because the 1997 and 2000 proposals are revolutionary as regards devolution. Although the 1997 document was an internal one, the 2000 document had Opposition inputs provided by eminent persons like KN Choksy.
I refer to the Table below which shows a comparison of a few selected aspects for reinforcement.
What concerns me is the stoic silence of seniors in the government, having agreed to support different devolutionary approaches, as evident from the Table. I do not wish to discuss the nitty-gritty of land powers for instance although there are questionable issues i. e. the attempt by the 1997 proposals to abolish the National Land Commission; it was corrected in the 2000 proposals. I will limit my presentation to the issues in the Table.
PC Boundaries
Let us look at PC boundaries. Some critics are against the existing boundaries of North and East Provinces, for reasons such as sovereignty and national security. But in 1997 the then government proposed to amalgamate two districts of Eastern Province with the Northern Province subject to approval by the people at a referendum in two districts. In 2000, they agreed to the creation of the North-East Province after a referendum, as proposed by Indians by way of an option, having staged street protests against it.
They were willing to establish a Muslim-dominated South-Eastern RC, pushing aside the Sinhala majority in Ampara Polling Division to the Uva RC, disturbing the demographic status of both RCs. They knew that the remaining Sinhalese and Tamil community, nearly 40% of the population in the Ampara District, would become a split minority in the new RC. The same fate would have befallen the North Trincomalee Sinhalese population, who were not offered the benefit of joining the North Central RC as in the proposed Ampara-Uva amalgamation. Having been the Governor of East, I am aware of such sensitivities. So much for the politicians who consider themselves the savior of the Sinhalese in the North and Eastern Provinces. In a way, one may expect the indigenous Eastern Muslim politicians to clamour for the South Eastern RC in return for the votes cast for the 20th Amendment.
Governors
The appointment of Governors is a presidential prerogative under 13A. But the 1997 proposals sought to dilute it by subjecting it to the advice of the Chief Minister. The Chief Minister’s involvement was one issue used by these politicians against devolving police powers to a Provincial Police Commission. The appointing prerogative was further restricted in the 2000 proposals by making it conditional to the concurrence of the Chief Minister, consultation with PM and approval of the Constitutional Council. That proposal, if implemented, would certainly have an averse to the powers of the incumbent President.
Of course, these changes in 1997 and 2000 will be attractive to minority party politicians. If the 2000 proposals were adopted, the names of those to be appointed Governors would have to be submitted to the Parliamentary Council, for its observations and endorsing the President’s choice. The removal of Governors in the 2000 proposals was the same as under 13A and 1997 proposals, but the setting up of another committee of inquiry was incorporated into the 2000 proposals [Art 129(d)(iv)] to check on the capacity of the Governor to perform his duties.
Provincial Executive Powers
Executive powers are given in one Article in the 13A and enlarged in 1997 and 2000 proposals. Extra responsibility for contracts is mentioned in Art 130(2)(a) and personal immunity from contract liability is given in Art 130(2)(b). The 1997 and 2000 proposals sought to introduce the Executive Committee system, which empowers discussion of subjects and functions assigned to an RC Ministry. More emphasis is given to the selection of the members than functioning in the proposed Article.
Committees are more powerful in the Indian States. The Committee system is preferred due to the time constraint for the members study the Bills, allowing an informed debate. Apart from scrutinizing legislation, Indian committees also examine budgetary allocations for various departments and other policies. These “mini-legislatures” provide a forum for lawmakers to develop expertise, engage with citizens, seek stakeholder inputs, provide a platform for building consensus on various issues, and strengthen policy management.
Of course, for a government that wishes to prevent committees from overviewing legislation in Parliament, such improvements at the PC level may be anathema. However, this discussion aims to highlight fact that positive and constructive propositions have been attempted.
Statute-making
There was no constitutional provision under 13A to support statute making. Therefore, the PCs had to depend on the generosity of expertise in the Attorney General’s Department. The two PCs in the North and the East, where devolution was to make an indomitable mark, we find slow progress in statute-making. The PCs in general did not have the expertise for statute-making. The clarification of any legal arrangement was always delayed.
A solution was found in the 1997 and 2000 proposals through the appointment of a Regional Attorney General (1997) and an Advocate General of the Region (2000). The provision in 13A for statute-making is reinforced with these two propositions.
Clamour for elections
I will not argue whether the PC elections should be held or not, or whether PCs should exist or not. I only attempt to show that the devolution concept has been expanded from 13A, and those who once agreed to reinforce devolution should not forget their past actions.
Of course, one may argue that the 13A was intended to resolve the armed conflict, which ceased in 2009, and therefore a new mechanism should be constructed to suit the present situation. However, their opponents may argue that the causes of the conflict have yet to be obviated and thus among other things, strengthening 13A is a prerequisite for national integration and reconciliation. Importantly, political commitments by leaders of the incumbent government should not be forgotten. Of course, this may create an issue for President Gotabaya Rajapaksa, who has not included national reconciliation and integration in the 20A.
The PC administrations have also been wavering as regards the powers they already have. I am reminded how all Peoples’ Alliance Chief Ministers challenged Land Minister Rajitha Senaratna’s attempt to pass land legislation and won. These PCs were silent when President Mahinda Rajapaksa once insisted that the centre held the land powers. It is noted that former PC Members supportive of the government have organized themselves demanding PC elections. They represent the government’s grassroots support like the Local Authority Members, who were responsible for the SLPP’s victory at the local government polls in 2018, which made the party’s electoral wins in 2019 and 2020 possible.
Some believe that the PC elections need not be held because its fate can be determined when the new Constitution is drafted. The very same commentators were silent when the 19A was replaced by 20A, without waiting for the new constitution!
Conclusion
This article has attempted to emphasise that we should not only consider the 13A as the basis for future decision-making as regards devolution.
Secondly, it aims to highlight the less-discussed issues that cropped up from 1987 (13A) to 2020 (20A). These are in the public domain and should be seriously considered by politicians as well as those who advise the government.
Thirdly, some of the incumbent government leaders have been exponents of devolution and were instrumental in the drafting of the aforesaid documents. Therefore, they need to remember the good they had done towards developing institutions and try to do something better. This is an exercise not only in politicking but also in bringing about reconciliation, which is necessary for the wellbeing of the country.
Fourthly, since there are measures that have received approval from the incumbent government leaders previously, the Opposition should look at them positively and contribute to further improvement instead of putting for political arguments.
Finally, the government should make a genuine effort to usher in reconciliation and reintegration, which will help it in Geneva come March 2021.
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 . )