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French Style, Sri Lankan Smile!

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CONFESSIONS OF A GLOBAL GYPSY

Dr. Chandana (Chandi) Jayawardena DPhil
President – Chandi J. Associates Inc. Consulting, Canada
Founder & Administrator – Global Hospitality Forum
chandij@sympatico.ca

Five-Star Hotels in Colombo

In 1986, there were only five five-star internationally branded hotels in Sri Lanka (InterContinental, Oberoi, Taj, Ramada Renaissance and Le Meridien). A Hilton International was nearing completion and planned to open in 1987. These hotels were located close to each other in Colombo and had only a total stock of 2,300 five-star rooms. All of these hotels had multiple food and beverage outlets and the largest banquet facilities in the country. Le Galadari Meridien was distinctively different from its competitors in Colombo.

Air France established Le Meridien Hotels in 1972. The chain’s hotels initially offered accommodation mainly for Air France flight crews and passengers in their major airport hub cities, around the world. Air France promoted the chain and handled reservations for it. The advanced reservation systems in the airline industry strongly influenced booking systems in all of the major international hotel chains. The first Le Meridien property was a 1,000-room hotel in the heart of Paris, the Hotel Meridien Paris, today known as Le Méridien Etoile.

The French style promoted by the European ambience, fashionably appointed rooms and expensive bedroom amenities. This French flair continued with French-designed staff uniforms, a wide collection of beautiful and large paintings done by French artists and a wider choice of wines and cheeses. All of these features truly enhanced the general quality of Le Galadari Meridien. Like all other five-star internationally branded hotels in Colombo, Le Meridien invested heavily on staff training and development. The hotel lived up to its original slogan: “French Style, Sri Lankan Smile!”

Le Galadari Meridien was the only hotel at that time in Sri Lanka to open with 500-rooms. Mr. Steffan Pfeiffer, who opened the hotel in 1984 as the General Manager, recruited me as the Acting Food & Beverage Manager in the mid-1986. He, as well as the outgoing Assistant Food & Beverage Manager and the outgoing Banquet Manager, worked with me for only a few days. I did not have the opportunity to meet my predecessor, a French hotelier, R. Garoute, who had held dual responsibilities as the Food & Beverage Manager and the Executive Assistant Manager. In the absence of a systematic hand over, I had to learn the ropes quickly and take over a large division.

Lifelong Le Meridien Friendships

French Executive Chef Emile Castillo, a key member of my team, commenced on the same day that I joined the hotel. After the initial culture shock, the two of us got along very well and became lifelong friends. In the late 1980s, Emile was an occasional, Sunday lunch visitor at my family home in the suburbs of Colombo.

Later in 1997 when I was the General Manager of Le Meridien Jamaica Pegasus hotel, Emile accepted an invitation from me. I was introducing Le Meridien Brand to the largest five-star business hotel in Jamaica, and the French food festival Emile organized there was a big help. Until his retirement, Emile eventually spent 27 years as the Executive Chef of Le Parker Meridien Hotel in New York, USA, where his regular customers included President Bill Clinton. During some of my visits to New York, I stayed with Emile and his family. He and his Sri Lankan wife visited my family during their last visit to Canada, a few years ago.

Shortly after I had joined Le Galadari Meridien in Colombo, the company sent a veteran French Hotelier, Mr. Jean-Michel Varichon, to be the Acting General Manager. He had been involved with 28 Le Meridien hotel openings around the world. He was a member of the Le Meridien corporate team in Paris. I quickly realized that his task was to re-organize the hotel in keeping with the latest Le Meridien quality standards, and then hand over the management to the next General Manager who was coming from France.

Mr. Varichon was a hard task master and a walking encyclopaedia on international hotel management. The senior executive team at Le Galadari Meridien felt harassed by his frequent challenging questions and lectures with details of highly technical aspects of hotel keeping. He also had a dry sense of humour. One day during a serious meeting, realizing that he had pressured the senior management team to the limit, he warned, “You better complete all the tasks I delegated to each of you quickly. Otherwise, I will extend my stay in Colombo!” When the managers laughed nervously, he said, “I am not joking!”

His nickname among Le Meridien hoteliers was “Monsieur Le Meridien”. He was a perfectionist and a very knowledgeable teacher. During the short time I worked with him, I absorbed all Le Meridien information I could like blotting paper. When I opened Le Meridien in Jamaica, Mr. Varichon arrived there on my invitation to help me with the opening. I could not think of anyone better to advise me.

Thanks to the special training by Mr. Jean-Michel Varichon, I was well-familiar with Le Meridien standards by the time the new General Manager, Jean-Pierre Kaspar, arrived to take over the hotel. Soon after he settled into his new job, Mr. Kaspar became my mentor. In his mid-career, he had been a Food & Beverage Manager and we had similar personalities. Our offices on the mezzanine floor were next to each other. Often, in late afternoons, we had a casual chat over a cup of espresso and cookies in his office. I soon became his trusted wingman.

Our respect for each other was mutual. “Chandi, you are the only person out of 500 full-time employees in this hotel who has been a hotel General Manager. Therefore, you understand my role better than anyone else here,” he once told me. Some years later, Mr. Kaspar left Le Meridien to join another French hotel chain, Sofitel (Accor Group SA). My family and I visited Mr. and Mrs. Kaspar at Singapore Sofitel. After 36 years, we still keep in touch.

Banquet Operation

With ballroom and conference room facilities, adequate to accommodate 1,200 persons for a sit-down meal, Le Galadari Meridien had the largest and the finest five-star banquet space in Sri Lanka at that time. In addition to my duties to administer the Food and Beverage division, in the absence of a Banquet Manager, I also managed the day-to-day banquet operation for a few months.

Soon after I joined the hotel, I personally handled a state banquet hosted by the President of Sri Lanka, Mr. J. R. Jayewardene, in honour of General Hussain Muhammad Ershad, the President of Bangladesh. My experience in 1984, at the Dorchester in London, serving Queen Elizabeth II, Prince Philip, Prime Minister Margret Thatcher and the Emir of Bahrain was useful in leading that state banquet in Colombo.

Food and Beverage Operations

After a couple of months, I recruited an experienced Banquet Manager, but decided to manage without filling the vacancy of the Assistant Food & Beverage Manager. Partly it was to save some expenses to increase our departmental profits. By directly dealing with six food & beverage outlet managers I aimed to fully understand the day-to-day operational challenges.

These managers who were designated at Le Meridien as ‘Maître d’hôtel’, managed ten operational departments – La Palme D’Or – French Restaurant (with a French Sous Chef), Marco Polo – Oriental Restaurant (with a Chinese Chef de Partie), La Brassiere – 24-hour Coffee Shop, Colombo 2000 – Night Club, Colombo Club – Gentleman’s club, Room Service, Pastry Shop, Rendezvous – Lobby Bar, Dolphin – Poolside Snack Bar and the 15th floor Rooftop Bar.

In addition, four other managers – Executive Chef, Banquet Manager, Chief Kitchen Steward and Food & Beverage Analyst, reported to me directly. Due to the popularity of the ten food and beverage outlets and large banqueting facilities, the Food and Beverage Division of Le Galadari Meridian was generating over half the total revenue of the hotel. I was also overall responsible for 230 full-time staff (including 10 departmental heads) which was nearly half the hotel’s employees. I worked very hard, long hours often till 4:00 am (night club closing time) on Fridays and Saturdays. I never felt tired as I simply loved the challenge of leading such a diverse and a dynamic division.

The Concept of Food and Beverage Management

I clearly understood the concept of food and beverage management. The knowledge I gained in England through in-depth research for my master’s degree dissertation on that topic and the practical experience I gained in food and beverage departments in all 16 five-star hotels in London, was finally becoming very useful.

The concept of food and beverage manager or director was relatively new in the world. During the first half of the twentieth century, most five-star hotels around the world did not make a lot of profit from their food and beverage operations which were often managed as different divisions. There were no divisional heads educated/trained in business administration. From an economic standpoint it was important to attempt to break even in five-star food and beverage operations. Traditionally, more emphasis was given to rooms, because this was where the money was made.

The concept of food and beverage management was developed only in the 1960s by major hotel chains in the USA. The aim was to optimize profits, combining the technical know-how with the business administration skills of a divisional head for the overall food and beverage departments.

Understanding the customer, was the key to optimize revenue and departmental profits. In Colombo, the key reasons for the customers to patronize five-star food and beverage outlets and banqueting facilities were three-fold – status, high quality and superior service. Therefore, compared to four-star, three-star or two-star hotels, the regular customers of five-star hotels were far more demanding. That single factor made it essential to have excellent public relations and highly attentive customer service to ensure high customer satisfaction levels.

Promoting the Chef like a Product

During a brainstorming session with the General Manager, Director of Sales, Public Relations Manager, myself and the advertising agency of the hotel, a question was posed about the focus of a new promotional campaign for the hotel. I suggested that we design a campaign, around the new initiatives the new Executive Chef would be focusing on.

I explained that, “having worked at Trust House Forte’s four-star Pegasus Reef Hotel in the late-1970s, and later at the five-star Hotel Lanka Oberoi as the Executive Chef, Emile Castillo knows Sri Lanka very well and Sri Lankans know him well. We should use him and his name to enhance our image and promote food sales.” All agreed, and we developed a three-stage advertising (ad) campaign focusing on Emile. We kept the artwork and the copy of the initial three teaser ads short and simple.

The first ad appearing on the front page of all major English newspapers, had one short question in large bold letters: “What’s new at Le Galadari Meridien?” There were no visuals, but a large question mark, which attracted attention and created the interest we wanted. The second ad repeated on the same front pages, asked the same question, and with the addition of a large visual of a chef hat. The third ad included a large photograph of Emile in a chef uniform, and a description of his experience since leaving Sri Lanka a few years ago. It also included his new and exciting plans for Le Galadari Meridien. That campaign cost us lot of money, but worked like a charm in reaching our business goal.

Money spent on creative and effective ads is a good investment. Then we followed up with a series of ads and newsletters.Chef Emile Castillo as the Star in a monthly newsletterThe follow up ads focused on what Emile’s new menus for all our restaurants and the new French business lunch at Palme D’Or. That was unique in two aspects – the only authentic French restaurant in Sri Lanka and the restaurant at the highest elevation in Colombo, at that time. We proceeded with that focus and the campaign worked well.

We wanted to get some professional models to appear in a follow up ad campaign for the French business lunch at Palme D’Or. The models were expensive and as a cost cutting exercise, the Public Relations Manager, Aloma Abeysuriya said, “Chandi, you are a well experienced TV model. Why don’t you appear free for one ad? I can get the ‘handsome’ Assistant Security Manager also to appear free posing like a businessman!” Aloma’s creative idea was accepted and we settled for two ‘free’ models for the second campaign.

‘Free’ models for French Business Lunch at Palme D’Or

The Chef’s Table

Encouraged with the popularity of our new campaigns, we then created a weekly public relations activity – ‘Chef’s Table in the Kitchen’. We invited seven guests every Wednesday for a four course French lunch right inside the kitchen in the midst of culinary action and loud noises. The General Manager, Executive Chef and I joined the lunch as hosts. Each invitee was presented with a chef hat and an apron with Le Meridien logo, which they proudly wore during the meal.

Before lunch, Emile conducted a quick tour of the kitchen and explained the duties of his Sous Chefs and Chef de Parties, who led a kitchen brigade of 80 culinary professionals. We then sat at a roundtable with ten chairs to enjoy Emile’s new creations, every week. The lunch with matching French wines ended with a presentation of the menu cards signed by Emile. Aloma ensured that the photographs taken during lunch were sent to each invitee within 24-hours.

The Chef’s Table initiative became very popular and the talk of the town among the corporate leaders of Colombo. I was amused when very senior business leaders called us to find a way to get invited to the Chefs Table. It became like a status symbol and many business leaders proudly displayed their Le Meridien Chef hats, kitchen aprons and framed photographs from the exclusive event they attended, in their offices.

After that, we organized a string of major French food festivals with many sponsors with French connections. These events generated much publicity in the local media. Soon we increased Le Galadari Meridien food sales by 50%. Emile became a household name in Colombo. He also regularly appeared in French TV shows such as ‘Bonsoir’ hosted by well-known Corporate Etiquette Trainer – Kumar de Silva.



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Features

The heart-friendly health minister

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Dr. Ramesh Pathirana

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.

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A LOVING TRIBUTE TO JESUIT FR. ALOYSIUS PIERIS ON HIS 90th BIRTHDAY

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Fr. Aloysius Pieris, SJ 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 on Nov. 23, 2019.

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.

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A fairy tale, success or debacle

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Ministers S. Iswaran and Malik Samarawickrama signing the joint statement to launch FTA negotiations. (Picture courtesy IPS)

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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