Features
Geostrategic significance of Pompeo’s visit
By Neville Ladduwahetty
The arrival of US Secretary of State Micheal Pompeo days before the US presidential election has been a cause for much speculation. Judging from the countries he visited––India, Sri Lanka, Maldives, Indonesia and Vietnam––the Secretary’s whirlwind visits were to strengthen geostrategic ties with these countries as a measure of preparedness to counter the growing dominance of China in the Indo-Pacific region. As part of this exercise what Secretary Pompeo and the US Secretary Defence, Mark Esper, achieved in India was a total makeover of India’s image globally; a founding member of the Non-Aligned Movement has now become an ally of the US and committed member of the Quad.
In comparison to what happened in India, the MCC agreement with Sri Lanka amounts to small change. What happened in India would transform a geostrategic alliance with Quad partners into one that would have far-reaching geopolitical implications because its current relationship with the US would affect relations with all its neighbours such as Pakistan, Sri Lanka and others.
As far as Sri Lanka is concerned, there was considerable apprehension as to whether the government would sign the MCC agreement, notwithstanding the opposition to it ever since the public came to know of its existence. However, following talks with Secretary Pompeo, the President has reportedly informed his Ministers that the MCC Agreement would not be signed. By not making an official statement to this effect and embarrassing its guest for the sake of gaining cheap political capital, the government has acted with maturity and good taste. After all, one does not have to crow when one does not compromise on principles such as sovereignty, independence and territorial integrity.
WHAT THE US ACHIEVED in INDIA
According to a report in The Island of November 1, by Special Correspondent S. Venkat Narayan, India signed five pacts, one of which “was the crucial Basic Exchange and Cooperation Agreement (BECA) to share sensitive satellite and map data. This agreement will give India access to topographical, nautical and aeronautical data vital for pinpointed attacks using missiles and armed drones… BECA clears the path for India acquiring armed drones in the first instance and at a later date, fighter aircraft. Esper alluded to the discussions around this topic when he announced that the US planned to sell more fighter planes and drones to India.”
The report states: “A second official said the Indian link up with the US Central Command and African Command indicates that the two countries have bonded on hard security issues. ‘It is quite evident from the 2+2 dialogue that India has completely integrated with other members of the of the four-nation Quadrilateral Strategic Dialogue (QUAD) to monitor the Indian pacific region’ he said… Esper said the two countries’ focus must now ‘be on institutionalizing and regularizing our cooperation to meet the challenges of the day and uphold the principles of a free and open Indo-Pacific well into the future’ (Ibid).
The report ends thus: “Analysts say that the hesitation on India’s part to embrace the US for its national interests appears to have finally gone. The die has been cast for a strong Indo-US relationship, and it will not matter who wins the American presidential election on November 3”.
Having cast the die for a strong Indo-US relationship that “embraces the US for its national interests”, it makes sense for the Indian Foreign Secretary to question the relevance of non-alignment (Ceylon Today, November 3, 2020). However, for countries such as Sri Lanka, it is not to question the relevance or irrelevance of non-alignment but to accept the reality that India has abandoned a long cherished policy it fathered and nurtured and now finds that very policy an encumbrance because it does not resonate with its current geostrategic interests. It is a let-down not only for Sri Lanka but also to the over One Hundred other countries that committed faithfully to the Non-Aligned Movement. Instead of being despondent, Sri Lanka has to gear itself how to realign itself in keeping with the ongoing tectonic shifts in international relations.
FREE and OPEN INDO-PACIFIC
The principle of the QUAD and therefore of India as one of its partners, is to promote “a free and open Indo-Pacific”. Although the stated principle reaffirms the age old international practice of freedom of navigation, the QUAD is essentially a military strategic alliance to counter emerging threats from China in the Indo-Pacific region. These threats arise primarily because most countries in the region have territorial issues with China, starting with the artificial islands that China created in the South China sea. Since Sri Lanka’s Port City is also artificially created, the US has imposed sanctions on companies and/or individuals associated with its construction.
Apart from this, Sri Lanka has no issues with China or any other country. In fact, Prof. Colombage is cited in Ceylon Today of November 3, as having stated that “between 2009 and now, 550 warships from 20 countries have visited Sri Lanka”, thus practicing the principle of free and open navigation in the Indian Ocean. Therefore, Sri Lanka has no cause to align with India or any other country, the way India has done in the name of “national interest”.
With India “embracing” the US in a strategic security alliance because of its own national interest, the question for Sri Lanka is what the status of the Agreements and Accords that were forged with India when it was non-aligned is. Now that India has abandoned its former policy and committed to a new relationship with the USA and the QUAD, India’s bona fides as far as Sri Lanka is concerned become questionable because there is a credibility deficit.
With the US and India signing the key Basic Exchange and Cooperation Agreement “to share sensitive satellite map data”, India now has “access to topographical, nautical and aeronautical data even within Sri Lanka’s Greater Economic Zone. Such vital information gives India a clear and distinct advantage over Sri Lanka, that it did not have before. Such advantages are often exploited by major powers to the detriment of the smaller States. The irony in such a situation for India is that it shed blood to rid itself of colonialism, and later banded with other former colonial states to be fully free of colonial exploitation, but would itself become a coloniser and exploiter under the new relationship with the US, all in the name of “national interest”.
Reliance on the Non-Aligned Movement to bail out Sri Lanka from such a predicament would amount to blowing in the wind. Nor would appeals to India to play fair on account of centuries of deep and abiding bonding be of any help. What is at stake is pure and simple exploitation couched in smooth language based on “principles” such as free and open Indo-Pacific on the surface while exploiting what belongs to others beneath that geographic surface.
STRATEGY for SRI LANKA
Sri Lanka has to gear itself to face the emerging challenges arising from the dynamics of the newly forged US/India relationship. In this regard, Sri Lanka has to prepare itself to address how it is to structure the state including the institutions of government that best suits its own security, geography and its cultural roots under a new Constitution. In this regard, Sri Lanka should keep India informed only of the major trends of such an exercise not with the hope of securing India’s acquiescence, but as a matter of courtesy.
As for the economy, Sri Lanka should adopt measures that encourage the private sector to implement locally funded infrastructure projects to the maximum extent possible. By way of a real life experience, where this has benefited and continues to benefit the country is in the field of Water Supply. When Dinesh Gunawardena was Minister of Urban Development and Water Supply, a proposal was made to Dr. P.B. Jayasundara, who was the Secretary to the Treasury, to implement water supply schemes using locally raised funds because design and construction capabilities including materials required were available in Sri Lanka. The idea was welcomed but took time to germinate. With time and patience, today, out of a total of forty-four (44) small and medium scale Water Supply Projects throughout the country, twenty-two (22) are being implemented using local funding. Furthermore, locally funded projects are less costly than the foreign-funded ones.
Sri Lanka has the know-how and capability to undertake large scale Water Supply Projects as well. The issue however is the lack of funding. In such instances, instead of handing over the total project to foreign sources at a higher cost, the government should raise foreign funds and implement them locally because the local costs are considerably lower, and that means the foreign funds needed are significantly less than giving the entire project to foreign sources.
Such an approach should also be adopted for the construction of expressways that are toll roads as well, because even if such projects are given to foreign sources they are subcontracted out to local companies. Therefore, funds for infrastructure projects should be raised from foreign sources other than governments, and implemented locally at lower costs instead of handing over implementation to foreign sources at higher costs.
The benefits to the country that cannot be quantified in pure monetary terms are (1) That every project comes with it its share of challenges; exposing local personnel to the associated challenges means that they gain experience that otherwise they would never have received; (2) the fact that funding is sought from sources other than governments,means the country retains its independence without having to compromise its foreign relations thus avoiding financially related traps that are exploited by countries; (3) except for high priority projects such as power and energy, other projects should be delayed until Sri Lanka is able to catch its breath from the effects of the COVID – 19 Pandemic, and (4) to give Sri Lanka’s private sector every encouragement to engage with the private sector in other countries in projects that add value to local raw materials and minerals, and/or in projects that would substitute imports.
CONCLUSION
India and the US won big following the visit of Secretary of State Michael Pompeo and Secretary Defence Mark Esper. In fact, it was so big that the MCC Compact with Sri Lanka amounted to small change. Perhaps, it was this that made Secretary Pompeo leave the decision on the MCC Compact to Sri Lanka and the Sri Lankan people.
For the US, it got India to “embrace” a new relationship with the US and become a committed partner of the QUAD to a point where India’s Foreign Secretary has questioned the relevance of non-alignment. These shifts have transformed the geostrategic impact of Pompeo’s visit into a geopolitical one, and in the process have shaken the foundation of India/Sri Lanka relations. For India, the Basic Exchange and Cooperation Agreement (BECA) with the US gives access to maps and data relating to the Indian Ocean that are invaluable to it both militarily and economically. This data has to include much information relating the Sri Lanka’s Greater Economic Zone. This places Sri Lanka at a serious disadvantage that is bound to be exploited by India.
These tectonic shifts become the motivation for Sri Lanka to break free from its former constraints imposed by Indian intervention in Sri Lanka’s internal affairs, and restructure the State and its Institutions to ensure its own security in keeping with its geography and cultural values, under the new Constitution. In the meantime, Sri Lanka should revisit and refashion its economic strategies on the lines recommended above, thereby underscoring its commitment to the country’s Sovereignty, Independence and Territorial Integrity.
by Dr Gotabhya Ranasinghe
Senior Consultant Cardiologist
National Hospital Sri Lanka
When we sought a meeting with Hon Dr. Ramesh Pathirana, Minister of Health, he graciously cleared his busy schedule to accommodate us. Renowned for his attentive listening and deep understanding, Minister Pathirana is dedicated to advancing the health sector. His openness and transparency exemplify the qualities of an exemplary politician and minister.
Dr. Palitha Mahipala, the current Health Secretary, demonstrates both commendable enthusiasm and unwavering support. This combination of attributes makes him a highly compatible colleague for the esteemed Minister of Health.
Our discussion centered on a project that has been in the works for the past 30 years, one that no other minister had managed to advance.
Minister Pathirana, however, recognized the project’s significance and its potential to revolutionize care for heart patients.
The project involves the construction of a state-of-the-art facility at the premises of the National Hospital Colombo. The project’s location within the premises of the National Hospital underscores its importance and relevance to the healthcare infrastructure of the nation.
This facility will include a cardiology building and a tertiary care center, equipped with the latest technology to handle and treat all types of heart-related conditions and surgeries.
Securing funding was a major milestone for this initiative. Minister Pathirana successfully obtained approval for a $40 billion loan from the Asian Development Bank. With the funding in place, the foundation stone is scheduled to be laid in September this year, and construction will begin in January 2025.
This project guarantees a consistent and uninterrupted supply of stents and related medications for heart patients. As a result, patients will have timely access to essential medical supplies during their treatment and recovery. By securing these critical resources, the project aims to enhance patient outcomes, minimize treatment delays, and maintain the highest standards of cardiac care.
Upon its fruition, this monumental building will serve as a beacon of hope and healing, symbolizing the unwavering dedication to improving patient outcomes and fostering a healthier society.We anticipate a future marked by significant progress and positive outcomes in Sri Lanka’s cardiovascular treatment landscape within the foreseeable timeframe.
by Fr. Emmanuel Fernando, OMI
Jesuit Fr. Aloysius Pieris (affectionately called Fr. Aloy) celebrated his 90th birthday on April 9, 2024 and I, as the editor of our Oblate Journal, THE MISSIONARY OBLATE had gone to press by that time. Immediately I decided to publish an article, appreciating the untiring selfless services he continues to offer for inter-Faith dialogue, the renewal of the Catholic Church, his concern for the poor and the suffering Sri Lankan masses and to me, the present writer.
It was in 1988, when I was appointed Director of the Oblate Scholastics at Ampitiya by the then Oblate Provincial Fr. Anselm Silva, that I came to know Fr. Aloy more closely. Knowing well his expertise in matters spiritual, theological, Indological and pastoral, and with the collaborative spirit of my companion-formators, our Oblate Scholastics were sent to Tulana, the Research and Encounter Centre, Kelaniya, of which he is the Founder-Director, for ‘exposure-programmes’ on matters spiritual, biblical, theological and pastoral. Some of these dimensions according to my view and that of my companion-formators, were not available at the National Seminary, Ampitiya.
Ever since that time, our Oblate formators/ accompaniers at the Oblate Scholasticate, Ampitiya , have continued to send our Oblate Scholastics to Tulana Centre for deepening their insights and convictions regarding matters needed to serve the people in today’s context. Fr. Aloy also had tried very enthusiastically with the Oblate team headed by Frs. Oswald Firth and Clement Waidyasekara to begin a Theologate, directed by the Religious Congregations in Sri Lanka, for the contextual formation/ accompaniment of their members. It should very well be a desired goal of the Leaders / Provincials of the Religious Congregations.
Besides being a formator/accompanier at the Oblate Scholasticate, I was entrusted also with the task of editing and publishing our Oblate journal, ‘The Missionary Oblate’. To maintain the quality of the journal I continue to depend on Fr. Aloy for his thought-provoking and stimulating articles on Biblical Spirituality, Biblical Theology and Ecclesiology. I am very grateful to him for his generous assistance. Of late, his writings on renewal of the Church, initiated by Pope St. John XX111 and continued by Pope Francis through the Synodal path, published in our Oblate journal, enable our readers to focus their attention also on the needed renewal in the Catholic Church in Sri Lanka. Fr. Aloy appreciated very much the Synodal path adopted by the Jesuit Pope Francis for the renewal of the Church, rooted very much on prayerful discernment. In my Religious and presbyteral life, Fr.Aloy continues to be my spiritual animator / guide and ongoing formator / acccompanier.
Fr. Aloysius Pieris, BA Hons (Lond), LPh (SHC, India), STL (PFT, Naples), PhD (SLU/VC), ThD (Tilburg), D.Ltt (KU), has been one of the eminent Asian theologians well recognized internationally and one who has lectured and held visiting chairs in many universities both in the West and in the East. Many members of Religious Congregations from Asian countries have benefited from his lectures and guidance in the East Asian Pastoral Institute (EAPI) in Manila, Philippines. He had been a Theologian consulted by the Federation of Asian Bishops’ Conferences for many years. During his professorship at the Gregorian University in Rome, he was called to be a member of a special group of advisers on other religions consulted by Pope Paul VI.
Fr. Aloy is the author of more than 30 books and well over 500 Research Papers. Some of his books and articles have been translated and published in several countries. Among those books, one can find the following: 1) The Genesis of an Asian Theology of Liberation (An Autobiographical Excursus on the Art of Theologising in Asia, 2) An Asian Theology of Liberation, 3) Providential Timeliness of Vatican 11 (a long-overdue halt to a scandalous millennium, 4) Give Vatican 11 a chance, 5) Leadership in the Church, 6) Relishing our faith in working for justice (Themes for study and discussion), 7) A Message meant mainly, not exclusively for Jesuits (Background information necessary for helping Francis renew the Church), 8) Lent in Lanka (Reflections and Resolutions, 9) Love meets wisdom (A Christian Experience of Buddhism, 10) Fire and Water 11) God’s Reign for God’s poor, 12) Our Unhiddden Agenda (How we Jesuits work, pray and form our men). He is also the Editor of two journals, Vagdevi, Journal of Religious Reflection and Dialogue, New Series.
Fr. Aloy has a BA in Pali and Sanskrit from the University of London and a Ph.D in Buddhist Philosophy from the University of Sri Lankan, Vidyodaya Campus. On Nov. 23, 2019, he was awarded the prestigious honorary Doctorate of Literature (D.Litt) by the Chancellor of the University of Kelaniya, the Most Venerable Welamitiyawe Dharmakirthi Sri Kusala Dhamma Thera.
Fr. Aloy continues to be a promoter of Gospel values and virtues. Justice as a constitutive dimension of love and social concern for the downtrodden masses are very much noted in his life and work. He had very much appreciated the commitment of the late Fr. Joseph (Joe) Fernando, the National Director of the Social and Economic Centre (SEDEC) for the poor.
In Sri Lanka, a few religious Congregations – the Good Shepherd Sisters, the Christian Brothers, the Marist Brothers and the Oblates – have invited him to animate their members especially during their Provincial Congresses, Chapters and International Conferences. The mainline Christian Churches also have sought his advice and followed his seminars. I, for one, regret very much, that the Sri Lankan authorities of the Catholic Church –today’s Hierarchy—- have not sought Fr.
Aloy’s expertise for the renewal of the Catholic Church in Sri Lanka and thus have not benefited from the immense store of wisdom and insight that he can offer to our local Church while the Sri Lankan bishops who governed the Catholic church in the immediate aftermath of the Second Vatican Council (Edmund Fernando OMI, Anthony de Saram, Leo Nanayakkara OSB, Frank Marcus Fernando, Paul Perera,) visited him and consulted him on many matters. Among the Tamil Bishops, Bishop Rayappu Joseph was keeping close contact with him and Bishop J. Deogupillai hosted him and his team visiting him after the horrible Black July massacre of Tamils.
Sri Lanka-Singapore Free Trade Agreement
By Gomi Senadhira
senadhiragomi@gmail.com
“You might tell fairy tales, but the progress of a country cannot be achieved through such narratives. A country cannot be developed by making false promises. The country moved backward because of the electoral promises made by political parties throughout time. We have witnessed that the ultimate result of this is the country becoming bankrupt. Unfortunately, many segments of the population have not come to realize this yet.” – President Ranil Wickremesinghe, 2024 Budget speech
Any Sri Lankan would agree with the above words of President Wickremesinghe on the false promises our politicians and officials make and the fairy tales they narrate which bankrupted this country. So, to understand this, let’s look at one such fairy tale with lots of false promises; Ranil Wickremesinghe’s greatest achievement in the area of international trade and investment promotion during the Yahapalana period, Sri Lanka-Singapore Free Trade Agreement (SLSFTA).
It is appropriate and timely to do it now as Finance Minister Wickremesinghe has just presented to parliament a bill on the National Policy on Economic Transformation which includes the establishment of an Office for International Trade and the Sri Lanka Institute of Economics and International Trade.
Was SLSFTA a “Cleverly negotiated Free Trade Agreement” as stated by the (former) Minister of Development Strategies and International Trade Malik Samarawickrama during the Parliamentary Debate on the SLSFTA in July 2018, or a colossal blunder covered up with lies, false promises, and fairy tales? After SLSFTA was signed there were a number of fairy tales published on this agreement by the Ministry of Development Strategies and International, Institute of Policy Studies, and others.
However, for this article, I would like to limit my comments to the speech by Minister Samarawickrama during the Parliamentary Debate, and the two most important areas in the agreement which were covered up with lies, fairy tales, and false promises, namely: revenue loss for Sri Lanka and Investment from Singapore. On the other important area, “Waste products dumping” I do not want to comment here as I have written extensively on the issue.
1. The revenue loss
During the Parliamentary Debate in July 2018, Minister Samarawickrama stated “…. let me reiterate that this FTA with Singapore has been very cleverly negotiated by us…. The liberalisation programme under this FTA has been carefully designed to have the least impact on domestic industry and revenue collection. We have included all revenue sensitive items in the negative list of items which will not be subject to removal of tariff. Therefore, 97.8% revenue from Customs duty is protected. Our tariff liberalisation will take place over a period of 12-15 years! In fact, the revenue earned through tariffs on goods imported from Singapore last year was Rs. 35 billion.
The revenue loss for over the next 15 years due to the FTA is only Rs. 733 million– which when annualised, on average, is just Rs. 51 million. That is just 0.14% per year! So anyone who claims the Singapore FTA causes revenue loss to the Government cannot do basic arithmetic! Mr. Speaker, in conclusion, I call on my fellow members of this House – don’t mislead the public with baseless criticism that is not grounded in facts. Don’t look at petty politics and use these issues for your own political survival.”
I was surprised to read the minister’s speech because an article published in January 2018 in “The Straits Times“, based on information released by the Singaporean Negotiators stated, “…. With the FTA, tariff savings for Singapore exports are estimated to hit $10 million annually“.
As the annual tariff savings (that is the revenue loss for Sri Lanka) calculated by the Singaporean Negotiators, Singaporean $ 10 million (Sri Lankan rupees 1,200 million in 2018) was way above the rupees’ 733 million revenue loss for 15 years estimated by the Sri Lankan negotiators, it was clear to any observer that one of the parties to the agreement had not done the basic arithmetic!
Six years later, according to a report published by “The Morning” newspaper, speaking at the Committee on Public Finance (COPF) on 7th May 2024, Mr Samarawickrama’s chief trade negotiator K.J. Weerasinghehad had admitted “…. that forecasted revenue loss for the Government of Sri Lanka through the Singapore FTA is Rs. 450 million in 2023 and Rs. 1.3 billion in 2024.”
If these numbers are correct, as tariff liberalisation under the SLSFTA has just started, we will pass Rs 2 billion very soon. Then, the question is how Sri Lanka’s trade negotiators made such a colossal blunder. Didn’t they do their basic arithmetic? If they didn’t know how to do basic arithmetic they should have at least done their basic readings. For example, the headline of the article published in The Straits Times in January 2018 was “Singapore, Sri Lanka sign FTA, annual savings of $10m expected”.
Anyway, as Sri Lanka’s chief negotiator reiterated at the COPF meeting that “…. since 99% of the tariffs in Singapore have zero rates of duty, Sri Lanka has agreed on 80% tariff liberalisation over a period of 15 years while expecting Singapore investments to address the imbalance in trade,” let’s turn towards investment.
Investment from Singapore
In July 2018, speaking during the Parliamentary Debate on the FTA this is what Minister Malik Samarawickrama stated on investment from Singapore, “Already, thanks to this FTA, in just the past two-and-a-half months since the agreement came into effect we have received a proposal from Singapore for investment amounting to $ 14.8 billion in an oil refinery for export of petroleum products. In addition, we have proposals for a steel manufacturing plant for exports ($ 1 billion investment), flour milling plant ($ 50 million), sugar refinery ($ 200 million). This adds up to more than $ 16.05 billion in the pipeline on these projects alone.
And all of these projects will create thousands of more jobs for our people. In principle approval has already been granted by the BOI and the investors are awaiting the release of land the environmental approvals to commence the project.
I request the Opposition and those with vested interests to change their narrow-minded thinking and join us to develop our country. We must always look at what is best for the whole community, not just the few who may oppose. We owe it to our people to courageously take decisions that will change their lives for the better.”
According to the media report I quoted earlier, speaking at the Committee on Public Finance (COPF) Chief Negotiator Weerasinghe has admitted that Sri Lanka was not happy with overall Singapore investments that have come in the past few years in return for the trade liberalisation under the Singapore-Sri Lanka Free Trade Agreement. He has added that between 2021 and 2023 the total investment from Singapore had been around $162 million!
What happened to those projects worth $16 billion negotiated, thanks to the SLSFTA, in just the two-and-a-half months after the agreement came into effect and approved by the BOI? I do not know about the steel manufacturing plant for exports ($ 1 billion investment), flour milling plant ($ 50 million) and sugar refinery ($ 200 million).
However, story of the multibillion-dollar investment in the Petroleum Refinery unfolded in a manner that would qualify it as the best fairy tale with false promises presented by our politicians and the officials, prior to 2019 elections.
Though many Sri Lankans got to know, through the media which repeatedly highlighted a plethora of issues surrounding the project and the questionable credentials of the Singaporean investor, the construction work on the Mirrijiwela Oil Refinery along with the cement factory began on the24th of March 2019 with a bang and Minister Ranil Wickremesinghe and his ministers along with the foreign and local dignitaries laid the foundation stones.
That was few months before the 2019 Presidential elections. Inaugurating the construction work Prime Minister Ranil Wickremesinghe said the projects will create thousands of job opportunities in the area and surrounding districts.
The oil refinery, which was to be built over 200 acres of land, with the capacity to refine 200,000 barrels of crude oil per day, was to generate US$7 billion of exports and create 1,500 direct and 3,000 indirect jobs. The construction of the refinery was to be completed in 44 months. Four years later, in August 2023 the Cabinet of Ministers approved the proposal presented by President Ranil Wickremesinghe to cancel the agreement with the investors of the refinery as the project has not been implemented! Can they explain to the country how much money was wasted to produce that fairy tale?
It is obvious that the President, ministers, and officials had made huge blunders and had deliberately misled the public and the parliament on the revenue loss and potential investment from SLSFTA with fairy tales and false promises.
As the president himself said, a country cannot be developed by making false promises or with fairy tales and these false promises and fairy tales had bankrupted the country. “Unfortunately, many segments of the population have not come to realize this yet”.
(The writer, a specialist and an activist on trade and development issues . )
